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Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Automatic Data Processing's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.80.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Automatic Data Processingcouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Automatic Data Processing's Cash-to-Debt or its related term are showing as below:
MEX:ADAP'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.43 Med: 0.84 Max: 1.39
Current: 0.8
During the past 13 years, Automatic Data Processing's highest Cash to Debt Ratio was 1.39. The lowest was 0.43. And the median was 0.84.
MEX:ADAP's Cash-to-Debt is ranked worse than 67.99% of 2846
companies
in the Software industry
Industry Median: 2.455
vs MEX:ADAP: 0.80
Automatic Data Processing (MEX:ADAP) Cash-to-Debt Explanation
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Automatic Data Processing Cash-to-Debt Related Terms
Automatic Data Processing Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:ADAP vs SNOW, ADBE, INTU: Cash-to-Debt Comparison
For the Software - Application subindustry, Automatic Data Processing's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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-to-Debt vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Cash-to-Debt 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-to-Debt of 0.80 as of Jun. 2026. This is near median its historical median of 0.84. Over the past decade, Automatic Data Processing's Cash-to-Debt has ranged from 0.43 to 1.39. According to the industry distribution chart, Automatic Data Processing ranks #1935 out of 2846 companies in the Software industry, placing it in the top 68%.
Is Automatic Data Processing's Cash-to-Debt too high?
Automatic Data Processing's current Cash-to-Debt of 0.80 is near median its 10-year median of 0.84. Over the past 10 years, this metric has ranged from a low of 0.43 to a high of 1.39. The Software industry median Cash-to-Debt is 2.46. Automatic Data Processing's value of 0.80 is 67.4% below this industry median. Based on the distribution chart, Automatic Data Processing ranks #1935 out of 2846 companies in the Software industry, which is below the industry midpoint. Overall, Automatic Data Processing has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Cash-to-Debt compare to SNOW and ADBE?
According to the Software industry distribution chart, Automatic Data Processing ranks #1935 out of 2846 companies for Cash-to-Debt. This places Automatic Data Processing in the lower half of its industry. The industry median Cash-to-Debt is 2.46. Automatic Data Processing's value of 0.80 is 67.4% below this benchmark. Historically, Automatic Data Processing's own Cash-to-Debt has ranged from 0.43 to 1.39 over the past decade. While the company's 10-year median is 0.84 vs. the industry median of 2.46, 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-to-Debt for a Software company?
The median Cash-to-Debt among Software companies is 2.46, based on 2,846 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Cash-to-Debt of 0.80 is 67.4% 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-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Cash-to-Debt is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Cash-to-Debt is 0.80, which is near median its own 10-year median of 0.84. 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 Fairly Valued. The stock's GF Value™ is MXN5,143.71, compared to a current price of MXN4,760.40 — trading 7.5% below its estimated fair value. The current Cash-to-Debt is 0.80, which is near median its 10-year median of 0.84 and 67.4% below the Software industry median of 2.46. Automatic Data Processing's overall GF Score™ is 92/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Automatic Data Processing (MEX:ADAP), the current Cash-to-Debt is 0.80 as of Jun. 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 MXN4,760.40 is trading 7.5% below its estimated GF Value™ of MXN5,143.71.
GuruFocus considers Automatic Data Processing to be Fairly Valued.
Key valuation signals for MEX:ADAP:
Cash-to-Debt: 0.80 (near median its 10-year median of 0.84)
GF Value™: MXN5,143.71 vs. price of MXN4,760.40 (7.5% below fair value)
Industry Position: 67.4% below the Software median (#1935 of 2846)
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.
92GF Score
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