Total Asset Turnover
since 2005
Calculation
Automatic Data Processing Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Jun 30, 2021 | 0.31 | = | 15,005,400) | ÷ | 48,772,500) |
| Jun 30, 2020 | 0.37 | = | 14,589,800) | ÷ | 39,165,500) |
| Jun 30, 2019 | 0.34 | = | 14,175,200) | ÷ | 41,887,700) |
| Jun 30, 2018 | 0.36 | = | 13,325,800) | ÷ | 37,088,700) |
| Jun 30, 2017 | 0.33 | = | 12,379,800) | ÷ | 37,180,000) |
| Jun 30, 2016 | 0.27 | = | 11,667,800) | ÷ | 43,670,000) |
| Jun 30, 2015 | 0.33 | = | 10,938,500) | ÷ | 33,110,500) |
| Jun 30, 2014 | 0.38 | = | 12,206,500) | ÷ | 32,051,700) |
| Jun 30, 2013 | 0.35 | = | 11,310,100) | ÷ | 32,268,100) |
| Jun 30, 2012 | 0.35 | = | 10,665,200) | ÷ | 30,815,500) |
| Jun 30, 2011 | 0.29 | = | 9,879,500) | ÷ | 34,238,300) |
| Jun 30, 2010 | 0.33 | = | 8,927,700) | ÷ | 26,862,200) |
| Jun 30, 2009 | 0.35 | = | 8,867,100) | ÷ | 25,351,700) |
| Jun 30, 2008 | 0.37 | = | 8,776,500) | ÷ | 23,734,400) |
| Jun 30, 2007 | 0.29 | = | 7,800,000) | ÷ | 26,648,900) |
| Jun 30, 2006 | 0.32 | = | 8,881,500) | ÷ | 27,490,100) |
| Jun 30, 2005 | 0.31 | = | 8,499,100) | ÷ | 27,615,400) |
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 analysis of the asset turnover ratio from 2005 to 2021 reveals a period of relative stability characterized by fluctuations within a narrow range of 0.27 to 0.38. While total revenues grew from approximately 8.5 billion USD to 15 billion USD, the total asset base expanded from 27.6 billion USD to 48.8 billion USD. This proportional growth resulted in a terminal asset turnover ratio of 0.31 in 2021, nearly returning to the 0.31 level observed in 2005.
- Revenue and Asset Growth Correlation
- A consistent upward trajectory in both revenues and total assets is observed over the 17-year period. Because the expansion of the asset base has largely paced the growth in revenue, the company's ability to generate sales from its assets has remained within a consistent operational band, avoiding significant long-term degradation of efficiency.
- Peak and Trough Analysis
- The asset turnover ratio reached its maximum efficiency of 0.38 in 2014, indicating a period where revenue generation was most optimized relative to the size of the balance sheet. The lowest point of efficiency occurred in 2016, with the ratio dropping to 0.27. This decline coincided with a significant spike in total assets to 43.7 billion USD, which outpaced revenue growth for that fiscal year.
- Recent Asset Utilization Trends
- Following the 2016 trough, a recovery phase was observed, with the ratio climbing back to 0.36 by 2018. However, a downward trend emerged between 2018 and 2021, ending at 0.31. This recent decline is attributed to the asset base reaching a historical peak of 48.8 billion USD in 2021, suggesting that recent capital investments or asset accumulations have not yet yielded a proportional increase in revenue.
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Comparison to Competitors
Automatic Data Processing Inc., total asset turnover, 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 | 0.31 | 1.17 | 0.58 | 0.45 | 0.68 | 0.43 | 0.43 | 0.62 | 0.50 | 0.31 | 0.47 | 0.42 | 0.32 | 0.55 | 0.48 | 0.50 |
| Jun 30, 2020 | 0.37 | 1.20 | 0.53 | — | 0.68 | 0.32 | 0.47 | 0.70 | 0.47 | 0.34 | 0.41 | 0.38 | 0.31 | 0.52 | 0.46 | 0.53 |
| Jun 30, 2019 | 0.34 | 1.45 | 0.54 | — | 0.70 | 0.35 | 0.51 | 1.08 | 0.44 | 0.36 | — | 0.44 | 0.43 | 0.57 | 0.52 | 0.51 |
| Jun 30, 2018 | 0.36 | 1.70 | 0.48 | — | 0.87 | — | 0.65 | 1.15 | 0.43 | 0.29 | — | 0.39 | 0.50 | 0.67 | 0.51 | 0.43 |
| Jun 30, 2017 | 0.33 | 1.62 | 0.50 | — | 0.80 | — | 0.63 | 1.27 | 0.37 | 0.28 | — | 0.51 | 0.48 | 0.57 | 0.50 | 0.50 |
| Jun 30, 2016 | 0.27 | 1.69 | 0.46 | — | 0.87 | — | 0.68 | 1.10 | 0.44 | 0.33 | — | 0.50 | 0.52 | 0.68 | 0.46 | 0.43 |
| Jun 30, 2015 | 0.33 | 1.80 | 0.41 | — | 0.72 | — | 0.74 | 0.84 | 0.53 | 0.34 | — | 0.47 | 0.50 | 0.56 | 0.44 | 0.33 |
| Jun 30, 2014 | 0.38 | 1.78 | 0.38 | — | 0.49 | — | 0.79 | 0.87 | 0.50 | 0.42 | — | 0.40 | 0.44 | 0.48 | 0.43 | 0.22 |
| Jun 30, 2013 | 0.35 | 1.80 | 0.39 | — | 0.60 | — | 0.79 | 0.76 | 0.55 | 0.45 | — | 0.68 | 0.55 | 0.36 | 0.45 | 0.29 |
| Jun 30, 2012 | 0.35 | 1.79 | 0.44 | — | 0.58 | — | 0.88 | 0.89 | 0.61 | 0.47 | — | 0.63 | 0.54 | 0.51 | 0.42 | — |
| Jun 30, 2011 | 0.29 | 1.74 | 0.47 | — | 0.65 | — | 0.92 | 0.75 | 0.64 | 0.48 | — | — | 0.54 | — | 0.46 | — |
| Jun 30, 2010 | 0.33 | 1.80 | 0.47 | — | 0.54 | — | 0.88 | 0.66 | 0.73 | 0.44 | — | — | 0.53 | — | 0.42 | — |
| Jun 30, 2009 | 0.35 | 1.89 | 0.40 | — | 0.60 | — | 0.88 | 0.66 | 0.75 | 0.49 | — | — | 0.73 | — | 0.46 | — |
| Jun 30, 2008 | 0.37 | 2.04 | 0.61 | — | 0.62 | — | 0.95 | 0.66 | 0.83 | 0.47 | — | — | 0.69 | — | 0.49 | — |
| Jun 30, 2007 | 0.29 | 2.00 | 0.55 | — | 0.42 | — | 0.82 | 0.63 | 0.81 | 0.52 | — | — | 0.75 | — | 0.46 | — |
| Jun 30, 2006 | 0.32 | 1.94 | 0.43 | — | 0.43 | — | 0.89 | 0.85 | 0.64 | 0.50 | — | — | 0.71 | — | 0.51 | — |
| Jun 30, 2005 | 0.31 | 1.91 | 0.81 | — | 0.39 | — | 0.86 | 0.75 | 0.56 | 0.57 | — | — | 0.63 | — | 0.46 | — |
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., total asset turnover, long-term trends, comparison to sector (software & services)
| Automatic Data Processing Inc. | Software & Services | |
|---|---|---|
| Jun 30, 2021 | 0.31 | 0.49 |
| Jun 30, 2020 | 0.37 | 0.48 |
| Jun 30, 2019 | 0.34 | 0.50 |
| Jun 30, 2018 | 0.36 | 0.51 |
| Jun 30, 2017 | 0.33 | 0.47 |
| Jun 30, 2016 | 0.27 | 0.54 |
| Jun 30, 2015 | 0.33 | 0.59 |
| Jun 30, 2014 | 0.38 | 0.61 |
| Jun 30, 2013 | 0.35 | 0.66 |
| Jun 30, 2012 | 0.35 | 0.72 |
| Jun 30, 2011 | 0.29 | 0.75 |
| Jun 30, 2010 | 0.33 | 0.76 |
| Jun 30, 2009 | 0.35 | 0.79 |
| Jun 30, 2008 | 0.37 | 0.86 |
| Jun 30, 2007 | 0.29 | 0.81 |
| Jun 30, 2006 | 0.32 | 0.78 |
| Jun 30, 2005 | 0.31 | 0.77 |
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., total asset turnover, long-term trends, comparison to industry (information technology)
| Automatic Data Processing Inc. | Information Technology | |
|---|---|---|
| Jun 30, 2021 | 0.31 | 0.62 |
| Jun 30, 2020 | 0.37 | 0.58 |
| Jun 30, 2019 | 0.34 | 0.59 |
| Jun 30, 2018 | 0.36 | 0.59 |
| Jun 30, 2017 | 0.33 | 0.51 |
| Jun 30, 2016 | 0.27 | 0.55 |
| Jun 30, 2015 | 0.33 | 0.63 |
| Jun 30, 2014 | 0.38 | 0.64 |
| Jun 30, 2013 | 0.35 | 0.66 |
| Jun 30, 2012 | 0.35 | 0.70 |
| Jun 30, 2011 | 0.29 | 0.73 |
| Jun 30, 2010 | 0.33 | 0.72 |
| Jun 30, 2009 | 0.35 | 0.69 |
| Jun 30, 2008 | 0.37 | 0.79 |
| Jun 30, 2007 | 0.29 | 0.76 |
| Jun 30, 2006 | 0.32 | 0.75 |
| Jun 30, 2005 | 0.31 | 0.76 |
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).