Stock Analysis on Net
Stock Analysis on Net

Automatic Data Processing Inc. (NASDAQ:ADP)

Analysis of Liquidity Ratios
Quarterly Data

Beginner level

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


Liquidity Ratios (Summary)

Automatic Data Processing Inc., liquidity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Current ratio 1.05 1.03 1.02 1.01 1.05 1.04 1.05 1.03 1.05 1.05 1.06 1.10 1.10 1.09 1.09 1.13 1.10 1.08 1.10 1.13 1.06 1.07 1.06 1.11
Quick ratio 0.14 0.12 0.10 0.25 0.13 0.11 0.18 0.13 0.14 0.12 0.10 0.15 0.15 0.13 0.14 0.16 0.14 0.12 0.14 0.18 0.12 0.11 0.09 0.15
Cash ratio 0.06 0.05 0.04 0.17 0.06 0.05 0.09 0.05 0.07 0.06 0.05 0.08 0.09 0.08 0.08 0.10 0.09 0.07 0.09 0.12 0.06 0.06 0.05 0.09

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

Liquidity 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Current Ratio

Automatic Data Processing Inc., current ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Current assets 31,564,100  35,708,700  41,365,000  29,508,500  34,342,300  40,924,000  31,682,600  29,955,900  32,050,000  38,714,000  39,350,000  31,002,600  32,658,700  39,514,400  35,808,100  30,124,200  39,500,400  46,819,000  35,659,200  30,176,100  28,809,200  32,792,800  39,116,000  25,793,400 
Current liabilities 30,126,600  34,672,800  40,522,400  29,200,900  32,627,700  39,166,000  30,296,900  29,037,300  30,413,600  36,741,200  37,250,900  28,286,600  29,815,900  36,418,500  32,956,300  26,719,300  35,847,400  43,250,400  32,468,100  26,587,300  27,113,700  30,714,700  36,770,200  23,159,300 
Liquidity Ratio
Current ratio1 1.05 1.03 1.02 1.01 1.05 1.04 1.05 1.03 1.05 1.05 1.06 1.10 1.10 1.09 1.09 1.13 1.10 1.08 1.10 1.13 1.06 1.07 1.06 1.11
Benchmarks
Current Ratio, Competitors2
Accenture PLC 1.37 1.38 1.39 1.40 1.34 1.35 1.33 1.34 1.29 1.31 1.25 1.23 1.22 1.29 1.24 1.35 1.42 1.41 1.25 1.36 1.40 1.47 1.42

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Q4 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 31,564,100 ÷ 30,126,600 = 1.05

2 Click competitor name to see calculations.

Liquidity 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Quick Ratio

Automatic Data Processing Inc., quick ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Cash and cash equivalents 1,908,500  1,705,000  1,500,400  1,403,900  1,949,200  1,826,200  2,785,600  1,490,300  2,170,000  2,293,600  1,773,400  2,363,600  2,780,400  2,995,500  2,705,200  2,776,600  3,191,100  2,941,400  2,794,900  3,184,700  1,639,300  1,808,600  1,850,800  2,175,700 
Short-term marketable securities —  3,200  7,200  3,545,100  10,500  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Accounts receivable, net of allowance for doubtful accounts 2,441,300  2,620,600  2,587,900  2,490,400  2,439,300  2,485,200  2,638,100  2,216,400  1,984,200  2,043,400  2,045,500  1,788,700  1,703,600  1,811,500  1,839,500  1,620,600  1,742,800  2,074,400  1,634,200  1,565,200  1,546,900  1,580,700  1,595,600  1,390,300 
Total quick assets 4,349,800  4,328,800  4,095,500  7,439,400  4,399,000  4,311,400  5,423,700  3,706,700  4,154,200  4,337,000  3,818,900  4,152,300  4,484,000  4,807,000  4,544,700  4,397,200  4,933,900  5,015,800  4,429,100  4,749,900  3,186,200  3,389,300  3,446,400  3,566,000 
 
Current liabilities 30,126,600  34,672,800  40,522,400  29,200,900  32,627,700  39,166,000  30,296,900  29,037,300  30,413,600  36,741,200  37,250,900  28,286,600  29,815,900  36,418,500  32,956,300  26,719,300  35,847,400  43,250,400  32,468,100  26,587,300  27,113,700  30,714,700  36,770,200  23,159,300 
Liquidity Ratio
Quick ratio1 0.14 0.12 0.10 0.25 0.13 0.11 0.18 0.13 0.14 0.12 0.10 0.15 0.15 0.13 0.14 0.16 0.14 0.12 0.14 0.18 0.12 0.11 0.09 0.15
Benchmarks
Quick Ratio, Competitors2
Accenture PLC 1.25 1.25 1.28 1.29 1.22 1.23 1.22 1.24 1.19 1.19 1.13 1.12 1.11 1.17 1.15 1.25 1.22 1.19 1.07 1.18 1.21 1.27 1.24

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Q4 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,349,800 ÷ 30,126,600 = 0.14

2 Click competitor name to see calculations.

Liquidity 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Cash Ratio

Automatic Data Processing Inc., cash ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Selected Financial Data (US$ in thousands)
Cash and cash equivalents 1,908,500  1,705,000  1,500,400  1,403,900  1,949,200  1,826,200  2,785,600  1,490,300  2,170,000  2,293,600  1,773,400  2,363,600  2,780,400  2,995,500  2,705,200  2,776,600  3,191,100  2,941,400  2,794,900  3,184,700  1,639,300  1,808,600  1,850,800  2,175,700 
Short-term marketable securities —  3,200  7,200  3,545,100  10,500  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total cash assets 1,908,500  1,708,200  1,507,600  4,949,000  1,959,700  1,826,200  2,785,600  1,490,300  2,170,000  2,293,600  1,773,400  2,363,600  2,780,400  2,995,500  2,705,200  2,776,600  3,191,100  2,941,400  2,794,900  3,184,700  1,639,300  1,808,600  1,850,800  2,175,700 
 
Current liabilities 30,126,600  34,672,800  40,522,400  29,200,900  32,627,700  39,166,000  30,296,900  29,037,300  30,413,600  36,741,200  37,250,900  28,286,600  29,815,900  36,418,500  32,956,300  26,719,300  35,847,400  43,250,400  32,468,100  26,587,300  27,113,700  30,714,700  36,770,200  23,159,300 
Liquidity Ratio
Cash ratio1 0.06 0.05 0.04 0.17 0.06 0.05 0.09 0.05 0.07 0.06 0.05 0.08 0.09 0.08 0.08 0.10 0.09 0.07 0.09 0.12 0.06 0.06 0.05 0.09
Benchmarks
Cash Ratio, Competitors2
Accenture PLC 0.54 0.49 0.52 0.55 0.45 0.44 0.43 0.50 0.41 0.38 0.37 0.42 0.37 0.39 0.44 0.55 0.43 0.40 0.36 0.51 0.51 0.54 0.55

Based on: 10-K (filing date: 2020-08-05), 10-Q (filing date: 2020-05-01), 10-Q (filing date: 2020-01-31), 10-Q (filing date: 2019-11-04), 10-K (filing date: 2019-08-09), 10-Q (filing date: 2019-05-03), 10-Q (filing date: 2019-01-31), 10-Q (filing date: 2018-11-01), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-Q (filing date: 2018-02-01), 10-Q (filing date: 2017-11-02), 10-K (filing date: 2017-08-04), 10-Q (filing date: 2017-05-04), 10-Q (filing date: 2017-02-01), 10-Q (filing date: 2016-11-03), 10-K (filing date: 2016-08-05), 10-Q (filing date: 2016-05-05), 10-Q (filing date: 2016-02-03), 10-Q (filing date: 2015-11-05), 10-K (filing date: 2015-08-07), 10-Q (filing date: 2015-05-06), 10-Q (filing date: 2015-02-05), 10-Q (filing date: 2014-10-30).

1 Q4 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,908,500 ÷ 30,126,600 = 0.06

2 Click competitor name to see calculations.

Liquidity 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 Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.