Automatic Data Processing Inc. (NASDAQ:ADP)

The financial data reveals various notable trends in liabilities and equity over the observed periods.

Current Liabilities

Accounts payable showed a general decline from 152,300 thousand US dollars in 2016 to a low of 102,000 thousand in 2020, followed by a sharp increase to 141,100 thousand in 2021.

Accrued expenses and other current liabilities steadily increased from 1,246,800 thousand in 2016 to peak at 1,980,700 thousand in 2020, then slightly decreased to 1,963,300 thousand in 2021.

Accrued payroll and payroll-related expenses fluctuated, starting from 616,700 thousand in 2016, dropping in 2017, peaking at 910,200 thousand in 2021, indicating variability in payroll-related costs.

Dividends payable consistently increased each year, nearly doubling from 238,400 thousand in 2016 to 390,800 thousand in 2021. This suggests an increasing commitment to shareholder returns.

Short-term deferred revenues steadily declined from 233,200 thousand in 2016 to 203,900 thousand in 2021, pointing to a decreasing level of advance customer payments or unearned revenue in the short term.

Obligations under reverse repurchase agreements emerged only in 2019 and remained relatively low compared to other liabilities.

Short-term debt was only recorded in 2020 at 1,001,800 thousand, indicating a singular increase in short-term borrowings that year.

Income taxes payable showed fluctuations with no clear trend, increasing from 28,200 thousand in 2016 to 58,200 thousand in 2021.

Overall, current liabilities before client funds obligations rose significantly from 2,515,600 thousand in 2016, peaking at 4,295,000 thousand in 2020, then decreasing to 3,691,000 thousand in 2021.

Client Funds Obligations and Total Current Liabilities

Client funds obligations saw substantial variability, starting at 33,331,800 thousand in 2016, falling to 25,831,600 thousand in 2020, then sharply increasing to 34,403,800 thousand in 2021. This suggests fluctuations in client-related liabilities or custodial responsibilities.

Consequently, total current liabilities followed a similar pattern, declining from 35,847,400 thousand in 2016 to 30,126,600 thousand in 2020, then rising again to 38,094,800 thousand in 2021.

Long-Term Liabilities

Long-term debt remained stable near 2,002,400 thousand between 2016 and 2019, dropped significantly to 1,002,800 thousand in 2020, then sharply increased to 2,985,000 thousand in 2021.

Long-term operating lease liabilities appeared in 2020 and 2021 around 344,000 thousand, indicating new lease commitments or accounting changes.

Other liabilities gradually increased from 701,100 thousand in 2016 to approximately 834,100 thousand in 2021, showing moderate growth.

Deferred income taxes declined over the years from 251,100 thousand in 2016 to 482,900 thousand in 2021, with a notable jump in 2019 and 2020 before decreasing in 2021.

Long-term deferred revenues remained relatively stable, hovering near 370,000 to 400,000 thousand over the periods.

Noncurrent liabilities remained mostly flat around 3,200,000 to 3,800,000 thousand during 2016-2020, then increased markedly to 5,007,600 thousand in 2021.

Total Liabilities

After a decline from 39,188,400 thousand in 2016 to 33,413,300 thousand in 2020, total liabilities rose significantly to 43,102,400 thousand in 2021, mainly driven by increased current and noncurrent liabilities.

Stockholders’ Equity

Common stock remained constant at 63,900 thousand throughout the period.

Capital in excess of par value showed steady growth from 768,100 thousand in 2016 to 1,531,300 thousand in 2021, reflecting additional paid-in capital increases.

Retained earnings increased consistently from 14,003,300 thousand in 2016 to 19,451,100 thousand in 2021, indicating accumulated profitability and earnings retention.

Treasury stock, recorded as a negative value, expanded steadily from -10,138,600 thousand in 2016 to -15,386,800 thousand in 2021, demonstrating ongoing stock repurchases or treasury transactions.

Accumulated other comprehensive income (loss) improved substantially from a negative balance of -215,100 thousand in 2016 to a positive 10,600 thousand in 2021, reflecting favorable changes in unrealized gains or other comprehensive income components.

Overall, stockholders’ equity displayed fluctuations, declining from 4,481,600 thousand in 2016 to 3,459,600 thousand in 2018, then increasing markedly to 5,750,200 thousand in 2020 before slightly decreasing to 5,670,100 thousand in 2021.

Total Liabilities and Stockholders’ Equity

The total of liabilities and equity moved in alignment with liabilities and equity changes, falling from 43,670,000 thousand in 2016 to a low of 37,088,700 thousand in 2018, then rising to a high of 48,772,500 thousand in 2021, reflecting the overall company size and financing levels.