The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Automatic Data Processing's Revenue for the
three
months ended in Mar. 2026 was MXN107,100 Mil. Automatic Data Processing's average Accounts Receivable for the
three
months ended in Mar. 2026 was MXN62,867 Mil.
Hence, Automatic Data Processing's Receivables Turnover for the
three
months ended in Mar. 2026 was 1.70.
Automatic Data Processing (MEX:ADAP) Receivables Turnover Explanation
An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.
Automatic Data Processing Receivables Turnover Related Terms
Automatic Data Processing Receivables Turnover 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.
Automatic Data Processing Receivables Turnover Chart
MEX:ADAP vs SNOW, DDOG, ADBE: Receivables Turnover Comparison
For the Software - Application subindustry, Automatic Data Processing's Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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 Receivables Turnover vs Software Industry
For the Software industry and Technology sector, Automatic Data Processing's Receivables Turnover distribution charts can be found below:
* The bar in red indicates where Automatic Data Processing's Receivables Turnover 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 Receivables Turnover of 1.70 as of Mar. 2026. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Automatic Data Processing and its competitors. According to the industry distribution chart, Automatic Data Processing ranks #1258 out of 2765 companies in the Software industry, placing it in the top 45.5%.
Is Automatic Data Processing's Receivables Turnover too high?
Automatic Data Processing's current Receivables Turnover is 1.70. The Software industry median Receivables Turnover is 5.68. Automatic Data Processing's value of 1.70 is 70.1% below this industry median. Based on the distribution chart, Automatic Data Processing ranks #1258 out of 2765 companies in the Software industry, which is above the industry midpoint. Overall, Automatic Data Processing has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Automatic Data Processing's Receivables Turnover compare to SNOW and DDOG?
According to the Software industry distribution chart, Automatic Data Processing ranks #1258 out of 2765 companies for Receivables Turnover. This puts Automatic Data Processing in the upper half of its industry. The industry median Receivables Turnover is 5.68. Automatic Data Processing's value of 1.70 is 70.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Receivables Turnover for a Software company?
The median Receivables Turnover among Software companies is 5.68, based on 2,765 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Automatic Data Processing's current Receivables Turnover of 1.70 is 70.1% 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 Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Automatic Data Processing and its competitors. For the Software industry, the median Receivables Turnover is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Automatic Data Processing's current Receivables Turnover is 1.70. 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 MXN4,936.87, compared to a current price of MXN3,880.95 — trading 21.4% below its estimated fair value. The current Receivables Turnover is 1.70 and 70.1% below the Software industry median of 5.68. Automatic Data Processing's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Automatic Data Processing (MEX:ADAP), the current Receivables Turnover is 1.70 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 MXN3,880.95 is trading 21.4% below its estimated GF Value™ of MXN4,936.87.
GuruFocus considers Automatic Data Processing to be Modestly Undervalued.
Key valuation signals for MEX:ADAP:
Receivables Turnover: 1.70
GF Value™: MXN4,936.87 vs. price of MXN3,880.95 (21.4% below fair value)
Industry Position: 70.1% below the Software median (#1258 of 2765)
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.
89GF Score
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