Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Automatic Data Processing Inc., consolidated balance sheet: assets

US$ in thousands

	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Cash and cash equivalents	2,575,200)	1,908,500)	1,949,200)	2,170,000)	2,780,400)	3,191,100)
Accounts receivable, net of allowance for doubtful accounts	2,727,400)	2,441,300)	2,439,300)	1,984,200)	1,703,600)	1,742,800)
Other current assets	533,400)	506,200)	519,600)	758,000)	883,200)	725,300)
Current assets before funds held for clients	5,836,000)	4,856,000)	4,908,100)	4,912,200)	5,367,200)	5,659,200)
Funds held for clients	34,905,800)	26,708,100)	29,434,200)	27,137,800)	27,291,500)	33,841,200)
Current assets	40,741,800)	31,564,100)	34,342,300)	32,050,000)	32,658,700)	39,500,400)
Long-term receivables, net of allowance for doubtful accounts	11,500)	18,600)	23,800)	25,500)	28,000)	27,100)
Property, plant and equipment, net	684,500)	703,900)	764,200)	793,700)	779,900)	685,000)
Operating lease right-of-use asset	462,200)	493,700)	—)	—)	—)	—)
Deferred contract costs	2,498,200)	2,401,600)	2,428,500)	—)	—)	—)
Other assets	825,800)	458,400)	934,400)	1,089,600)	1,352,200)	1,241,300)
Goodwill	2,338,400)	2,309,400)	2,323,000)	2,243,500)	1,741,000)	1,682,000)
Intangible assets, net	1,210,100)	1,215,800)	1,071,500)	886,400)	620,200)	534,200)
Noncurrent assets	8,030,700)	7,601,400)	7,545,400)	5,038,700)	4,521,300)	4,169,600)
Total assets	48,772,500)	39,165,500)	41,887,700)	37,088,700)	37,180,000)	43,670,000)

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 presents a multifaceted view of the company's asset base over a six-year period, revealing notable trends and shifts in composition.

Cash and cash equivalents: There is a clear decrease in cash reserves from 2016 through 2020, declining from approximately 3.19 billion USD to about 1.9 billion USD. This trend reverses in 2021, with a substantial increase to roughly 2.58 billion USD, indicating improved liquidity or cash inflows in the latest period.
Accounts receivable, net: The net accounts receivable show a consistent upward trend throughout the period, growing from approximately 1.74 billion USD in 2016 to 2.73 billion USD in 2021. This suggests a growing volume of credit sales or receivables collection terms that warrant monitoring for credit risk.
Other current assets: Although fluctuating, other current assets generally declined from 725 million USD in 2016 to 533 million USD in 2021, with notable drops in 2019 and 2020. This could reflect asset reclassification or reductions in short-term assets outside of cash and receivables.
Current assets before funds held for clients: This category decreased steadily from 5.66 billion USD in 2016 to a low of approximately 4.86 billion USD in 2020 before rebounding sharply to around 5.84 billion USD in 2021, mirroring the patterns in cash and other current asset components.
Funds held for clients: The funds held for clients exhibit more volatility, with a marked decrease from over 33.8 billion USD in 2016 to approximately 26.7 billion USD in 2020, followed by a significant recovery to nearly 34.9 billion USD in 2021. This fluctuation suggests variability in client asset balances or fiduciary responsibilities.
Current assets: Total current assets combine prior elements, showing a downward trend from 39.5 billion USD in 2016 to 31.56 billion USD in 2020, then a strong increase to 40.7 billion USD in 2021. The drop and recovery reflect the movements in funds held for clients and underlying current asset components.
Long-term receivables, net: These assets steadily decline from 27.1 million USD in 2016 to 11.5 million USD in 2021, indicating either collections on long-term receivables or reclassification.
Property, plant and equipment, net: This asset class shows moderate fluctuations, peaking at about 794 million USD in 2018, then gradually declining to approximately 685 million USD in 2021, reflecting possible disposals, depreciation, or limited new investment.
Operating lease right-of-use asset: Reported starting in 2020, these assets are substantial at nearly 494 million USD, slight decline to 462 million USD in 2021, reflecting the adoption of new lease accounting standards and subsequent amortization.
Deferred contract costs: These costs appear in 2019 with 2.43 billion USD, remaining fairly stable through 2021 around 2.5 billion USD, indicative of capitalization related to customer contracts with ongoing amortization.
Other assets: Other noncurrent assets decline markedly from 1.24 billion USD in 2016 to 458 million USD in 2020, then partially recover to 826 million USD in 2021, possibly reflecting asset sales or impairment and subsequent acquisitions or reclassifications.
Goodwill: Goodwill increases from 1.68 billion USD in 2016 to a peak of approximately 2.33 billion USD in 2019, stabilizing around that level through 2021, indicating acquisitions without significant impairment losses.
Intangible assets, net: Intangible assets grow steadily from 534 million USD in 2016 to a high of 1.22 billion USD in 2020, slightly decreasing in 2021. This trend points to substantial investment or capitalized expenses in intellectual property or similar assets.
Noncurrent assets: Noncurrent assets exhibit a rising trajectory, from 4.17 billion USD in 2016 to over 8 billion USD in 2021, reflecting growth in long-term investments, property and equipment, intangible assets, and goodwill.
Total assets: Total assets show a non-linear pattern, dropping from 43.67 billion USD in 2016 to around 37.1 billion USD in 2017 and remaining relatively flat through 2018. A notable increase to approximately 41.89 billion USD appears in 2019, followed by a decline in 2020 to 39.17 billion USD and then a substantial rise in 2021 to nearly 48.77 billion USD. This overall variability primarily reflects changes in funds held for clients and current assets, alongside growth in noncurrent assets.

Assets: Selected Items

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Current Assets: Selected Items

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Automatic Data Processing Inc. (NASDAQ:ADP)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items