Automatic Data Processing Inc (ADP)

Debt-to-assets ratio

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Long-term debt	US$ in thousands	2,991,300	2,990,700	2,990,200	2,989,800	2,989,000	2,988,600	2,988,100	2,987,600	2,987,100	2,986,600	2,986,100	2,985,500	2,985,000	1,994,300	1,994,100	1,993,900	1,002,800	1,002,800	1,003,000	1,003,400
Total assets	US$ in thousands	54,362,700	64,181,600	57,069,400	49,323,600	50,971,000	59,881,800	54,453,000	46,364,700	63,068,200	72,068,100	59,102,600	59,987,200	48,772,500	54,407,700	49,325,900	42,390,100	39,165,500	43,383,400	49,059,400	37,714,700
Debt-to-assets ratio		0.06	0.05	0.05	0.06	0.06	0.05	0.05	0.06	0.05	0.04	0.05	0.05	0.06	0.04	0.04	0.05	0.03	0.02	0.02	0.03

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,991,300K ÷ $54,362,700K
= 0.06

The debt-to-assets ratio of Automatic Data Processing Inc has been relatively stable over the past few years, ranging between 0.02 to 0.06. This ratio indicates the proportion of the company's assets that are financed by debt.

The trend shows that the company has maintained a conservative level of debt relative to its assets, which is generally a positive indicator of financial health and stability. A lower debt-to-assets ratio suggests that the company relies less on external debt financing, which can reduce financial risk and increase solvency.

Overall, the consistent and relatively low debt-to-assets ratio for Automatic Data Processing Inc indicates a prudent approach to managing its capital structure and financial obligations. It suggests that the company has a strong asset base relative to its debt levels, which can provide a sense of security for investors and creditors.