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Automatic Data Processing has a Cash Ratio of 0.06. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Automatic Data Processing's Cash Ratio or its related term are showing as below:
MEX:ADAP'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.06 Max: 0.19
Current: 0.06
During the past 13 years, Automatic Data Processing's highest Cash Ratio was 0.19. The lowest was 0.03. And the median was 0.06.
MEX:ADAP's Cash Ratio is ranked worse than 92.85% of 2813
companies
in the Software industry
Industry Median: 0.78
vs MEX:ADAP: 0.06
Automatic Data Processing (MEX:ADAP) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Automatic Data Processing Cash Ratio Related Terms
Automatic Data Processing Cash Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:ADAP vs SNOW, DDOG, ADBE: Cash Ratio Comparison
For the Software - Application subindustry, Automatic Data Processing's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Automatic Data Processing Cash Ratio vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Automatic Data Processing (MEX:ADAP) has a Cash Ratio of 0.06 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Automatic Data Processing and its competitors. This is near median its historical median of 0.06. Over the past decade, Automatic Data Processing's Cash Ratio has ranged from 0.03 to 0.19. According to the industry distribution chart, Automatic Data Processing ranks #2612 out of 2813 companies in the Software industry, placing it in the top 92.9%.
Is Automatic Data Processing's Cash Ratio too high?
Automatic Data Processing's current Cash Ratio of 0.06 is near median its 10-year median of 0.06. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.19. The Software industry median Cash Ratio is 0.78. Automatic Data Processing's value of 0.06 is 92.3% below this industry median. Based on the distribution chart, Automatic Data Processing ranks #2612 out of 2813 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Automatic Data Processing has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Cash Ratio compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #2612 out of 2813 companies for Cash Ratio. This places Automatic Data Processing in the lower half of its industry. The industry median Cash Ratio is 0.78. Automatic Data Processing's value of 0.06 is 92.3% below this benchmark. Historically, Automatic Data Processing's own Cash Ratio has ranged from 0.03 to 0.19 over the past decade. While the company's 10-year median is 0.06 vs. the industry median of 0.78, Automatic Data Processing has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.78, based on 2,813 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Cash Ratio of 0.06 is 92.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Cash Ratio is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Cash Ratio is 0.06, which is near median its own 10-year median of 0.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Automatic Data Processing stock overvalued right now?
Based on GuruFocus' analysis, Automatic Data Processing (MEX:ADAP) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN5,126.44, compared to a current price of MXN4,310.00 — trading 15.9% below its estimated fair value. The current Cash Ratio is 0.06, which is near median its 10-year median of 0.06 and 92.3% below the Software industry median of 0.78. Automatic Data Processing's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Automatic Data Processing (MEX:ADAP), the current Cash Ratio is 0.06 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Automatic Data Processing (MEX:ADAP) Overvalued in 2026?
Based on GuruFocus' analysis, Automatic Data Processing stock appears to be undervalued.
The current stock price of MXN4,310.00 is trading 15.9% below its estimated GF Value™ of MXN5,126.44.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for MEX:ADAP:
Cash Ratio: 0.06 (near median its 10-year median of 0.06)
GF Value™: MXN5,126.44 vs. price of MXN4,310.00 (15.9% below fair value)
Industry Position: 92.3% below the Software median (#2612 of 2813)
No single metric tells the full story. See the MEX:ADAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Automatic Data Processing, or ADP, is a global, cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including PEO offerings, enabling clients to reduce HR overhead. Its broad suite serves customers of all sizes across diverse sectors, and the firm holds large market shares in its core markets. As of fiscal 2025, ADP counts over 1.1 million clients and manages payroll for more than 42 million workers across 140 countries.
90GF Score
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