Stock Analysis on Net
Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 29, 2022.

Common-Size Balance Sheet: Assets

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Automatic Data Processing Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016
Cash and cash equivalents
Accounts receivable, net of allowance for doubtful accounts
Other current assets
Current assets before funds held for clients
Funds held for clients
Current assets
Long-term receivables, net of allowance for doubtful accounts
Property, plant and equipment, net
Operating lease right-of-use asset
Deferred contract costs
Other assets
Goodwill
Intangible assets, net
Noncurrent assets
Total assets

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

The financial data reveals several notable trends in the asset composition over the examined periods.

Cash and Cash Equivalents
This category shows a downward trend from 7.31% in 2016 to a low of 4.65% in 2019, followed by a moderate recovery to 5.28% by 2021, indicating a cautious approach to liquid asset holdings with slight reinvestment or accumulation after a decline.
Accounts Receivable, Net
The percentage steadily increased from 3.99% in 2016, peaking at 6.23% in 2020, then slightly decreased to 5.59% in 2021. This suggests increasing sales on credit or slower collections until the last period where an improvement may have occurred.
Other Current Assets
There was an initial increase up to 2.38% in 2017, followed by a consistent decline to 1.09% in 2021. This decrease points to either a reduction in miscellaneous current assets or improved asset utilization.
Current Assets Before Funds Held for Clients
This metric declined from 14.44% in 2017 to 11.97% in 2021 after some fluctuations, highlighting a gradual reduction in the company’s liquid and receivable assets exclusive of client funds.
Funds Held for Clients
A significant downward trend is observed from 77.49% in 2016 to 68.19% in 2020, followed by a rebound to 71.57% in 2021. This large proportion demonstrates the dominance of client funds in total assets, with some volatility reflecting possible changes in client balances or business scale.
Current Assets
The total current assets decreased from 90.45% in 2016 to a low of 80.59% in 2020, rebounding slightly to 83.53% in 2021. This trend mirrors movements in funds held for clients and other current assets, indicating an overall decline in current asset reliance around 2019-2020.
Long-term Receivables, Net
Remained minimal throughout, decreasing slightly to 0.02% by 2021, suggesting limited long-term receivables exposure.
Property, Plant and Equipment, Net
Fluctuated moderately, starting at 1.57% in 2016, peaking at 2.14% in 2018, then declining to 1.4% in 2021. This reduction could reflect asset depreciation or decreased capital expenditure.
Operating Lease Right-of-Use Asset
Reported only in 2020 and 2021, accounting for 1.26% and 0.95% respectively, which may correspond with adoption of new accounting standards relating to lease capitalization, showing a slight decrease in the second year.
Deferred Contract Costs
Appearing from 2019 onwards, this category rose to 6.13% in 2020 before contracting to 5.12% in 2021. These costs represent capitalized contract acquisition expenses and their sizable share suggests active contract acquisition and contract asset management.
Other Assets
Peaked at 3.64% in 2017 and then declined to 1.69% by 2021, indicating disposal or reclassification of other asset types or effective asset management.
Goodwill
Grew to 6.05% in 2018, then gradually declined to 4.79% in 2021, possibly reflecting impairment charges or fewer acquisition activities in later years.
Intangible Assets, Net
Increased steadily from 1.22% in 2016 to a peak of 3.1% in 2020, then decreased to 2.48% in 2021. This suggests investments in intangible resources followed by amortization or impairment effects.
Noncurrent Assets
Rose significantly from 9.55% in 2016 to a high of 19.41% in 2020, before dropping to 16.47% in 2021. This growth points to increased investments in long-term assets such as deferred contract costs and intangible assets, with the 2021 decrease indicating disposal, write-downs, or reclassification.
Total Assets
Maintained a consistent total of 100%, serving as the basis for all relative measurements.

Overall, the data depict a gradual shift from liquid and current assets towards more noncurrent and capitalized contract related assets, with notable impacts from accounting changes related to leases and contract costs. The dominance of client funds in total assets remains a defining characteristic, though this base exhibits some fluctuations. The trends in goodwill and intangible assets suggest active investment and occasional reassessment of acquired or developed intangible resources. These dynamics collectively reflect evolving operational focus and asset management strategies over the six-year period.