Automatic Data Processing Inc. | Short-term (Operating) Activity

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Automatic Data Processing Inc., short-term (operating) activity ratios

		Jun 30, 2018	Jun 30, 2017	Jun 30, 2016	Jun 30, 2015	Jun 30, 2014	Jun 30, 2013
	Turnover Ratios
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. of Days
	Add: Average receivable collection period
	Less: Average payables payment period

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Automatic Data Processing Inc.'s receivables turnover improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Automatic Data Processing Inc.'s payables turnover increased from 2016 to 2017 and from 2017 to 2018.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Automatic Data Processing Inc.'s working capital turnover improved from 2016 to 2017 and from 2017 to 2018.

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Automatic Data Processing Inc.'s average receivable collection period improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Automatic Data Processing Inc., receivables turnover 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)
	Revenues
	Accounts receivable, net of allowance for doubtful accounts
	Ratio
	Receivables turnover¹
	Benchmarks
	Receivables Turnover, Competitors
	Accenture PLC
	Receivables Turnover, Sector
	Support Services
	Receivables Turnover, Industry
	Industrials

2018 Calculations

¹ Receivables turnover = Revenues ÷ Accounts receivable, net of allowance for doubtful accounts
= hidden ÷ hidden = hidden

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Automatic Data Processing Inc.'s receivables turnover improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Automatic Data Processing Inc., payables turnover 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)
	Costs of revenues
	Accounts payable
	Ratio
	Payables turnover¹
	Benchmarks
	Payables Turnover, Competitors
	Accenture PLC
	Payables Turnover, Sector
	Support Services
	Payables Turnover, Industry
	Industrials

2018 Calculations

¹ Payables turnover = Costs of revenues ÷ Accounts payable
= hidden ÷ hidden = hidden

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Automatic Data Processing Inc.'s payables turnover increased from 2016 to 2017 and from 2017 to 2018.

Automatic Data Processing Inc., working capital turnover 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
	Less: Current liabilities
	Working capital
	Revenues
	Ratio
	Working capital turnover¹
	Benchmarks
	Working Capital Turnover, Competitors
	Accenture PLC
	Working Capital Turnover, Sector
	Support Services
	Working Capital Turnover, Industry
	Industrials

2018 Calculations

¹ Working capital turnover = Revenues ÷ Working capital
= hidden ÷ hidden = hidden

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Automatic Data Processing Inc.'s working capital turnover improved from 2016 to 2017 and from 2017 to 2018.

Automatic Data Processing Inc., average receivable collection period 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
	Receivables turnover
	Ratio (no. of days)
	Average receivable collection period¹
	Benchmarks (no. of days)
	Average Receivable Collection Period, Competitors
	Accenture PLC
	Average Receivable Collection Period, Sector
	Support Services
	Average Receivable Collection Period, Industry
	Industrials

2018 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Automatic Data Processing Inc.'s average receivable collection period improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Automatic Data Processing Inc., average payables payment period 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
	Payables turnover
	Ratio (no. of days)
	Average payables payment period¹
	Benchmarks (no. of days)
	Average Payables Payment Period, Competitors
	Accenture PLC
	Average Payables Payment Period, Sector
	Support Services
	Average Payables Payment Period, Industry
	Industrials

2018 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

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