Current Ratio
since 2005
Calculation
Automatic Data Processing Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Jun 30, 2021 | 1.07 | = | 40,741,800) | ÷ | 38,094,800) |
| Jun 30, 2020 | 1.05 | = | 31,564,100) | ÷ | 30,126,600) |
| Jun 30, 2019 | 1.05 | = | 34,342,300) | ÷ | 32,627,700) |
| Jun 30, 2018 | 1.05 | = | 32,050,000) | ÷ | 30,413,600) |
| Jun 30, 2017 | 1.10 | = | 32,658,700) | ÷ | 29,815,900) |
| Jun 30, 2016 | 1.10 | = | 39,500,400) | ÷ | 35,847,400) |
| Jun 30, 2015 | 1.06 | = | 28,809,200) | ÷ | 27,113,700) |
| Jun 30, 2014 | 1.08 | = | 25,833,400) | ÷ | 23,908,000) |
| Jun 30, 2013 | 1.06 | = | 26,201,000) | ÷ | 24,732,800) |
| Jun 30, 2012 | 1.08 | = | 25,155,600) | ÷ | 23,239,400) |
| Jun 30, 2011 | 1.07 | = | 28,583,500) | ÷ | 26,786,800) |
| Jun 30, 2010 | 1.11 | = | 22,316,700) | ÷ | 20,052,200) |
| Jun 30, 2009 | 1.10 | = | 20,703,900) | ÷ | 18,756,300) |
| Jun 30, 2008 | 1.08 | = | 18,808,900) | ÷ | 17,341,600) |
| Jun 30, 2007 | 1.07 | = | 21,853,400) | ÷ | 20,463,800) |
| Jun 30, 2006 | 1.09 | = | 22,244,000) | ÷ | 20,380,100) |
| Jun 30, 2005 | 1.08 | = | 22,338,600) | ÷ | 20,659,900) |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in thousands
Between June 30, 2005, and June 30, 2021, a highly consistent approach to liquidity management is evident. While the absolute values of current assets and current liabilities expanded significantly over this period, the relationship between the two remained remarkably stable, indicating a disciplined strategy to maintain a narrow and controlled margin of working capital.
- Growth of Current Assets and Liabilities
- A substantial upward trend in the scale of short-term balance sheet items is observed. Current assets increased from 22.3 billion US dollars in 2005 to 40.7 billion US dollars in 2021. In a corresponding pattern, current liabilities rose from 20.7 billion US dollars to 38.1 billion US dollars. This parallel growth demonstrates that the expansion of the organization's operational scale was matched by a proportional increase in short-term obligations.
- Current Ratio Stability
- The current ratio exhibited minimal volatility over the 17-year horizon, fluctuating within a narrow range between a minimum of 1.05 and a maximum of 1.11. The peak ratio occurred on June 30, 2010, while the lowest levels were maintained between 2018 and 2020. The ratio consistently hovered around the 1.07 mark, suggesting a lean liquidity posture where current assets only slightly exceed current liabilities.
- Working Capital Management Insights
- The lack of significant variance in the current ratio, despite the multi-billion dollar increases in both assets and liabilities, reflects a deliberate and precise working capital policy. The organization avoids maintaining excessive idle liquidity, instead opting to align its liquid resources closely with its immediate financial commitments. This suggests a high level of efficiency in managing short-term cash flows and obligations.
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Comparison to Competitors
Automatic Data Processing Inc., current ratio, long-term trends, comparison to competitors
| Automatic Data Processing Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2021 | 1.07 | 1.25 | 1.25 | 5.05 | 1.77 | 3.54 | 0.88 | 1.94 | 2.08 | 2.30 | 4.34 | 0.91 | 1.23 | 1.05 | 1.16 | 1.12 |
| Jun 30, 2020 | 1.05 | 1.40 | 1.48 | — | 1.86 | 5.77 | 0.98 | 2.26 | 2.52 | 3.03 | 3.74 | 1.91 | 1.08 | 1.21 | 1.19 | 1.04 |
| Jun 30, 2019 | 1.05 | 1.40 | 0.79 | — | 1.74 | 4.51 | 1.02 | 1.83 | 2.53 | 2.49 | — | 1.78 | 0.95 | 1.03 | 0.99 | 1.11 |
| Jun 30, 2018 | 1.05 | 1.34 | 1.13 | — | 1.34 | — | 1.29 | 1.14 | 2.90 | 3.96 | — | 1.93 | 0.92 | 1.17 | 0.73 | 1.92 |
| Jun 30, 2017 | 1.10 | 1.23 | 2.05 | — | 1.53 | — | 1.33 | 0.73 | 2.48 | 3.08 | — | 1.65 | 0.83 | 1.15 | 1.04 | 1.93 |
| Jun 30, 2016 | 1.10 | 1.35 | 2.08 | — | 1.20 | — | 1.21 | 0.72 | 2.35 | 3.74 | — | 2.03 | 0.77 | 1.25 | 1.00 | 2.56 |
| Jun 30, 2015 | 1.06 | 1.36 | 2.18 | — | 1.80 | — | 1.24 | 1.47 | 2.50 | 4.13 | — | 1.04 | 0.81 | 1.48 | 0.99 | 3.29 |
| Jun 30, 2014 | 1.08 | 1.46 | 1.85 | — | 1.33 | — | 1.25 | 1.84 | 2.50 | 3.35 | — | 2.75 | 0.67 | 1.79 | 1.09 | 4.80 |
| Jun 30, 2013 | 1.06 | 1.45 | 2.65 | — | 1.06 | — | 1.28 | 1.87 | 2.71 | 3.24 | — | 2.57 | 0.69 | 2.43 | 1.18 | 3.47 |
| Jun 30, 2012 | 1.08 | 1.55 | 3.41 | — | 1.14 | — | 1.13 | 1.20 | 2.60 | 2.60 | — | 3.13 | 0.72 | 1.99 | 0.91 | — |
| Jun 30, 2011 | 1.07 | 1.45 | 3.02 | — | 1.05 | — | 1.21 | 1.25 | 2.60 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Jun 30, 2010 | 1.11 | 1.46 | 3.01 | — | 1.26 | — | 1.19 | 1.88 | 2.13 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Jun 30, 2009 | 1.10 | 1.46 | 2.93 | — | 2.14 | — | 1.36 | 1.82 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Jun 30, 2008 | 1.08 | 1.34 | 3.59 | — | 1.69 | — | 1.15 | 1.21 | 1.45 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Jun 30, 2007 | 1.07 | 1.14 | 3.02 | — | 1.95 | — | 1.20 | 1.68 | 1.69 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Jun 30, 2006 | 1.09 | 1.26 | 4.26 | — | 2.39 | — | 1.11 | 1.79 | 2.18 | 1.73 | — | — | 1.29 | — | 1.03 | — |
| Jun 30, 2005 | 1.08 | 1.37 | 4.18 | — | 2.11 | — | 1.30 | 1.61 | 2.89 | 1.05 | — | — | 1.36 | — | 1.16 | — |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Software & Services)
Automatic Data Processing Inc., current ratio, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Jun 30, 2021 | 1.07 | 1.68 |
| Jun 30, 2020 | 1.05 | 1.92 |
| Jun 30, 2019 | 1.05 | 1.84 |
| Jun 30, 2018 | 1.05 | 2.23 |
| Jun 30, 2017 | 1.10 | 2.06 |
| Jun 30, 2016 | 1.10 | 2.03 |
| Jun 30, 2015 | 1.06 | 2.15 |
| Jun 30, 2014 | 1.08 | 2.01 |
| Jun 30, 2013 | 1.06 | 2.04 |
| Jun 30, 2012 | 1.08 | 1.84 |
| Jun 30, 2011 | 1.07 | 1.87 |
| Jun 30, 2010 | 1.11 | 1.61 |
| Jun 30, 2009 | 1.10 | 1.62 |
| Jun 30, 2008 | 1.08 | 1.36 |
| Jun 30, 2007 | 1.07 | 1.38 |
| Jun 30, 2006 | 1.09 | 1.53 |
| Jun 30, 2005 | 1.08 | 1.70 |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Information Technology)
Automatic Data Processing Inc., current ratio, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Jun 30, 2021 | 1.07 | 1.55 |
| Jun 30, 2020 | 1.05 | 1.71 |
| Jun 30, 2019 | 1.05 | 1.66 |
| Jun 30, 2018 | 1.05 | 1.88 |
| Jun 30, 2017 | 1.10 | 2.04 |
| Jun 30, 2016 | 1.10 | 2.01 |
| Jun 30, 2015 | 1.06 | 2.04 |
| Jun 30, 2014 | 1.08 | 1.98 |
| Jun 30, 2013 | 1.06 | 2.20 |
| Jun 30, 2012 | 1.08 | 2.08 |
| Jun 30, 2011 | 1.07 | 2.12 |
| Jun 30, 2010 | 1.11 | 2.02 |
| Jun 30, 2009 | 1.10 | 2.04 |
| Jun 30, 2008 | 1.08 | 1.80 |
| Jun 30, 2007 | 1.07 | 1.79 |
| Jun 30, 2006 | 1.09 | 1.86 |
| Jun 30, 2005 | 1.08 | 2.02 |
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), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).