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Automatic Data Processing Quick Ratio

: 0.99 (As of Jun. 2022)
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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Automatic Data Processing's quick ratio for the quarter that ended in Jun. 2022 was 0.99.

Automatic Data Processing has a quick ratio of 0.99. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for Automatic Data Processing's Quick Ratio or its related term are showing as below:

ADP' s Quick Ratio Range Over the Past 10 Years
Min: 0.99   Med: 1.73   Max: 2.71
Current: 0.99

During the past 13 years, Automatic Data Processing's highest Quick Ratio was 2.71. The lowest was 0.99. And the median was 1.73.

ADP's Quick Ratio is ranked worse than
74.58% of 1062 companies
in the Business Services industry
Industry Median: 1.55 vs ADP: 0.99

Automatic Data Processing Quick Ratio Historical Data

The historical data trend for Automatic Data Processing's Quick Ratio can be seen below:

* 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.

* Premium members only.

Automatic Data Processing Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.05 1.05 1.05 1.07 0.99

Automatic Data Processing Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.07 1.05 1.04 1.01 0.99

Competitive Comparison

For the Staffing & Employment Services subindustry, Automatic Data Processing's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution

For the Business Services industry and Industrials sector, Automatic Data Processing's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Automatic Data Processing's Quick Ratio falls into.



Automatic Data Processing Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Automatic Data Processing's Quick Ratio for the fiscal year that ended in Jun. 2022 is calculated as

Quick Ratio (A: Jun. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(54804.9-0)/55158.7
=0.99

Automatic Data Processing's Quick Ratio for the quarter that ended in Jun. 2022 is calculated as

Quick Ratio (Q: Jun. 2022 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(54804.9-0)/55158.7
=0.99

* 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  (NAS:ADP) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Automatic Data Processing Quick Ratio Related Terms

Thank you for viewing the detailed overview of Automatic Data Processing's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Automatic Data Processing Business Description

Automatic Data Processing logo
Address
One ADP Boulevard, Roseland, NJ, USA, 07068
ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 920,000 clients primarily in the United States. ADP's employer services segment offers payroll, HCM solutions, HR outsourcing, insurance and retirement services. The smaller but faster-growing PEO segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
Executives
Goeckeler David director C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Blanchard Augusto J officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Sperduto James T officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Magliulo Virginia officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Quevedo Alexander officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Kwon David officer: Corp VP ONE ADP BOULEVARD ROSELAD NJ 07068
D'ambrosio Christopher officer: Corp. VP ONE ADP BOULEVARD ROSELAND NJ 07068
Haynesworth Linnie M director 214 N TRYON STREET CHARLOTTE NC 28202
Brown Laura G officer: Corp. VP ONE ADP BOULEVARD ROSELAND NJ 07068
Keene Nazzic S director 1710 SAIC DRIVE MCLEAN VA 22102
Michaud Brian L. officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Desilva Joseph officer: Corp VP ONE ADP BOULEVARD ROSELAND NJ 07068
Katsoudas Francine S director ONE ADP BOULEVARD ROSELAND NJ 07068
Winters Kathleen A officer: Corp. VP 101 COLUMBIA ROAD MORRISTOWN NJ 07960
Levin Matthew officer: Corp VP NEUSTAR, INC. 4600 CENTER OAK PLAZA STERLING VA 20166

Automatic Data Processing Headlines

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