Liquidity ratios measure the company’s ability to meet its short-term obligations.

Automatic Data Processing Inc., liquidity ratios

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Automatic Data Processing Inc.’s current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Automatic Data Processing Inc., current ratio calculation, comparison to benchmarks

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	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

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= hidden ÷ hidden = hidden

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Automatic Data Processing Inc.’s current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Automatic Data Processing Inc., quick ratio calculation, comparison to benchmarks

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	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

2018 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= hidden ÷ hidden = hidden

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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Automatic Data Processing Inc., cash ratio calculation, comparison to benchmarks

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	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

2018 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= hidden ÷ hidden = hidden

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 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Automatic Data Processing Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Automatic Data Processing Inc. (ADP)

Liquidity Analysis