.Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company's ability to meet its short-term obligations.
Ratios (Summary)
Automatic Data Processing Inc., liquidity ratios
| Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| | Current ratio | ||||||
| | Quick ratio | ||||||
| | Cash ratio |
Source: Based on data from Automatic Data Processing Inc. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Automatic Data Processing Inc.'s current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Automatic Data Processing Inc.'s quick ratio improved from 2015 to 2016 and from 2016 to 2017. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Automatic Data Processing Inc.'s cash ratio improved from 2015 to 2016 and from 2016 to 2017. |
Current Ratio
Automatic Data Processing Inc., current ratio calculation, comparison to benchmarks
| Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Current assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Current ratio1 | ||||||
| Benchmarks | |||||||
| Current Ratio, Competitors | |||||||
| Accenture PLC | |||||||
| Current Ratio, Sector | |||||||
| Support Services | |||||||
| Current Ratio, Industry | |||||||
| Industrials | |||||||
Source: Based on data from Automatic Data Processing Inc. Annual Reports
2017 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Automatic Data Processing Inc.'s current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Quick Ratio
Automatic Data Processing Inc., quick ratio calculation, comparison to benchmarks
| Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Cash and cash equivalents | ||||||
| | Accounts receivable, net of allowance for doubtful accounts | ||||||
| | Total quick assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Quick ratio1 | ||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors | |||||||
| Accenture PLC | |||||||
| Quick Ratio, Sector | |||||||
| Support Services | |||||||
| Quick Ratio, Industry | |||||||
| Industrials | |||||||
Source: Based on data from Automatic Data Processing Inc. Annual Reports
2017 Calculations
1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Automatic Data Processing Inc.'s quick ratio improved from 2015 to 2016 and from 2016 to 2017. |
Cash Ratio
Automatic Data Processing Inc., cash ratio calculation, comparison to benchmarks
| Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | Jun 30, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | |||||||
| | Cash and cash equivalents | ||||||
| | Total cash assets | ||||||
| | Current liabilities | ||||||
| Ratio | |||||||
| | Cash ratio1 | ||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors | |||||||
| Accenture PLC | |||||||
| Cash Ratio, Sector | |||||||
| Support Services | |||||||
| Cash Ratio, Industry | |||||||
| Industrials | |||||||
Source: Based on data from Automatic Data Processing Inc. Annual Reports
2017 Calculations
1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Automatic Data Processing Inc.'s cash ratio improved from 2015 to 2016 and from 2016 to 2017. |
