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
The financial data indicates that current assets have generally increased from 22,338,600 thousand US dollars in mid-2005 to 40,741,800 thousand US dollars in mid-2021. Although there are fluctuations within this period, the overall trend points to growth. Notably, there was a considerable rise between mid-2014 and mid-2016, where current assets surged from 25,833,400 thousand to 39,500,400 thousand. After a slight decline in the subsequent years, assets rebounded again by 2021.
Current liabilities have also shown an upward trend over the same period. Starting at 20,659,900 thousand US dollars in mid-2005, liabilities increased to 38,094,800 thousand in mid-2021. Similar to current assets, liabilities experienced some fluctuations, including a significant jump from 23,908,000 thousand in mid-2013 to 35,847,400 thousand in mid-2016, followed by moderate variations thereafter.
The current ratio remained relatively stable throughout the years, fluctuating narrowly between 1.05 and 1.11. This ratio suggests that the company maintained a consistent liquidity position, balancing its ability to cover short-term obligations with its current assets. The peak current ratios of around 1.1 were seen sporadically, such as in mid-2009, mid-2010, and mid-2016, while the lowest values closer to 1.05 appeared in late years including mid-2018 onwards.
- Current Assets
- Displayed an overall upward trend from approximately 22.3 billion to over 40.7 billion USD, with notable acceleration between 2014 and 2016.
- Current Liabilities
- Also increased markedly from about 20.7 billion to 38.1 billion USD, with fluctuations aligning partially with asset changes.
- Current Ratio
- Maintained a stable profile around the benchmark of 1.05 to 1.11, indicating steady liquidity despite growing scale of assets and liabilities.
In summary, the period examined reveals a company expanding its current assets and liabilities in tandem, while preserving a consistent liquidity margin as reflected by the current ratio. There is no indication of deteriorating short-term financial health, but the steady ratio close to 1 suggests limited cushion beyond meeting current obligations, warranting continued monitoring in future periods.
Comparison to Competitors
Automatic Data Processing Inc., current ratio, long-term trends, comparison to competitors
| Automatic Data Processing Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | 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 | 1.77 | 2.65 | 0.99 | 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 | 2.38 | 1.29 | 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 | — | 0.93 | 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 | — | 0.80 | 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 | — | 0.95 | 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 | — | 1.09 | 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 | — | 1.18 | 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 | — | 0.85 | 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 | — | 1.50 | 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 | — | 1.24 | 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 | — | 2.49 | 1.21 | 1.25 | 2.60 | 2.76 | — | — | 0.84 | — | 1.33 | — |
| Jun 30, 2010 | 1.11 | 1.46 | 3.01 | 1.26 | — | 2.84 | 1.19 | 1.88 | 2.13 | 1.84 | — | — | 1.88 | — | 1.35 | — |
| Jun 30, 2009 | 1.10 | 1.46 | 2.93 | 2.14 | — | 3.86 | 1.36 | 1.82 | 1.82 | 2.03 | — | — | 1.39 | — | 1.80 | — |
| Jun 30, 2008 | 1.08 | 1.34 | 3.59 | 1.69 | — | 2.87 | 1.15 | 1.21 | 1.45 | 1.81 | — | — | 1.22 | — | 1.45 | — |
| Jun 30, 2007 | 1.07 | 1.14 | 3.02 | 1.95 | — | 0.80 | 1.20 | 1.68 | 1.69 | 1.37 | — | — | 1.11 | — | 1.29 | — |
| Jun 30, 2006 | 1.09 | 1.26 | 4.26 | 2.39 | — | 0.77 | 1.11 | 1.79 | 2.18 | 1.73 | — | — | 1.29 | — | 1.03 | — |
| Jun 30, 2005 | 1.08 | 1.37 | 4.18 | 2.11 | — | 2.99 | 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 | 1.67 |
| Jun 30, 2020 | 1.05 | 1.91 |
| Jun 30, 2019 | 1.05 | 1.84 |
| Jun 30, 2018 | 1.05 | 2.22 |
| 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 | 1.62 |
| Jun 30, 2009 | 1.10 | 1.63 |
| Jun 30, 2008 | 1.08 | 1.36 |
| Jun 30, 2007 | 1.07 | 1.37 |
| Jun 30, 2006 | 1.09 | 1.52 |
| 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 | 2.03 |
| Jun 30, 2014 | 1.08 | 1.97 |
| Jun 30, 2013 | 1.06 | 2.20 |
| Jun 30, 2012 | 1.08 | 2.07 |
| Jun 30, 2011 | 1.07 | 2.11 |
| Jun 30, 2010 | 1.11 | 2.01 |
| Jun 30, 2009 | 1.10 | 2.03 |
| Jun 30, 2008 | 1.08 | 1.80 |
| Jun 30, 2007 | 1.07 | 1.78 |
| Jun 30, 2006 | 1.09 | 1.85 |
| Jun 30, 2005 | 1.08 | 2.01 |
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).