Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Automatic Data Processing Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Automatic Data Processing Inc. receivables turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Automatic Data Processing Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Automatic Data Processing Inc. working capital turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Short-term activity 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. number of days of receivables outstanding improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| 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. |
Receivables Turnover
Automatic Data Processing Inc., receivables turnover calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Revenues | 15,005,400) | 14,589,800) | 14,175,200) | 13,325,800) | 12,379,800) | 11,667,800) | |
| Accounts receivable, net of allowance for doubtful accounts | 2,727,400) | 2,441,300) | 2,439,300) | 1,984,200) | 1,703,600) | 1,742,800) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 5.50 | 5.98 | 5.81 | 6.72 | 7.27 | 6.69 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Accenture PLC | 5.74 | 6.16 | 5.79 | 8.33 | — | — | |
| Adobe Inc. | 8.41 | 9.20 | 7.28 | 6.86 | — | — | |
| International Business Machines Corp. | 8.49 | 10.32 | 9.80 | — | — | — | |
| Intuit Inc. | 24.64 | 51.54 | 77.98 | 60.86 | — | — | |
| Microsoft Corp. | 4.42 | 4.47 | 4.26 | 4.17 | — | — | |
| Oracle Corp. | 7.48 | 7.04 | 7.69 | 7.55 | — | — | |
| Palo Alto Networks Inc. | 3.43 | 3.29 | 4.98 | 4.86 | — | — | |
| Salesforce Inc. | 2.73 | 2.77 | 2.70 | — | — | — | |
| ServiceNow Inc. | 4.24 | 4.48 | 4.14 | — | — | — | |
| Synopsys Inc. | 7.40 | 4.72 | 6.07 | 5.63 | — | — | |
| Receivables Turnover, Sector | |||||||
| Software & Services | 5.22 | 5.59 | 5.58 | — | — | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | 7.57 | 8.02 | 7.60 | — | — | — | |
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).
1 2021 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net of allowance for doubtful accounts
= 15,005,400 ÷ 2,727,400 = 5.50
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Automatic Data Processing Inc. receivables turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Payables Turnover
Automatic Data Processing Inc., payables turnover calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Costs of revenues | 8,640,300) | 8,445,100) | 8,086,600) | 7,842,600) | 7,269,800) | 6,840,300) | |
| Accounts payable | 141,100) | 102,000) | 125,500) | 135,400) | 149,700) | 152,300) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 61.24 | 82.80 | 64.44 | 57.92 | 48.56 | 44.91 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Accenture PLC | 15.03 | 22.48 | 18.16 | 21.62 | — | — | |
| Adobe Inc. | 5.98 | 5.63 | 7.98 | 6.42 | — | — | |
| International Business Machines Corp. | 6.54 | 7.75 | 8.30 | — | — | — | |
| Intuit Inc. | 2.70 | 4.52 | 4.26 | 5.49 | — | — | |
| Microsoft Corp. | 3.44 | 3.68 | 4.57 | 4.45 | — | — | |
| Oracle Corp. | 10.54 | 12.46 | 13.78 | 15.28 | — | — | |
| Palo Alto Networks Inc. | 22.41 | 15.72 | 11.03 | 13.06 | — | — | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | 15.20 | 28.83 | 15.04 | — | — | — | |
| Synopsys Inc. | 31.44 | 26.49 | 38.00 | 8.65 | — | — | |
| Payables Turnover, Sector | |||||||
| Software & Services | 5.70 | 6.57 | 7.59 | — | — | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | 4.99 | 5.34 | 5.26 | — | — | — | |
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).
1 2021 Calculation
Payables turnover = Costs of revenues ÷ Accounts payable
= 8,640,300 ÷ 141,100 = 61.24
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Automatic Data Processing Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Working Capital Turnover
Automatic Data Processing Inc., working capital turnover calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 40,741,800) | 31,564,100) | 34,342,300) | 32,050,000) | 32,658,700) | 39,500,400) | |
| Less: Current liabilities | 38,094,800) | 30,126,600) | 32,627,700) | 30,413,600) | 29,815,900) | 35,847,400) | |
| Working capital | 2,647,000) | 1,437,500) | 1,714,600) | 1,636,400) | 2,842,800) | 3,653,000) | |
| Revenues | 15,005,400) | 14,589,800) | 14,175,200) | 13,325,800) | 12,379,800) | 11,667,800) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 5.67 | 10.15 | 8.27 | 8.14 | 4.35 | 3.19 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Accenture PLC | 12.77 | 8.71 | 9.85 | 12.12 | — | — | |
| Adobe Inc. | 9.09 | 4.89 | — | 16.24 | — | — | |
| International Business Machines Corp. | — | — | 107.30 | — | — | — | |
| Intuit Inc. | 3.85 | 1.73 | 4.17 | 20.71 | — | — | |
| Microsoft Corp. | 1.76 | 1.30 | 1.19 | 0.99 | — | — | |
| Oracle Corp. | 1.29 | 1.12 | 1.42 | 0.70 | — | — | |
| Palo Alto Networks Inc. | — | 1.40 | 1.80 | 1.14 | — | — | |
| Salesforce Inc. | 5.11 | 15.29 | — | — | — | — | |
| ServiceNow Inc. | 21.76 | 5.76 | 46.69 | — | — | — | |
| Synopsys Inc. | 10.65 | 9.00 | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Software & Services | 2.78 | 2.17 | 2.33 | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | 3.87 | 2.86 | 3.06 | — | — | — | |
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).
1 2021 Calculation
Working capital turnover = Revenues ÷ Working capital
= 15,005,400 ÷ 2,647,000 = 5.67
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Automatic Data Processing Inc. working capital turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Average Receivable Collection Period
Automatic Data Processing Inc., average receivable collection period calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 5.50 | 5.98 | 5.81 | 6.72 | 7.27 | 6.69 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 66 | 61 | 63 | 54 | 50 | 55 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Accenture PLC | 64 | 59 | 63 | 44 | — | — | |
| Adobe Inc. | 43 | 40 | 50 | 53 | — | — | |
| International Business Machines Corp. | 43 | 35 | 37 | — | — | — | |
| Intuit Inc. | 15 | 7 | 5 | 6 | — | — | |
| Microsoft Corp. | 83 | 82 | 86 | 88 | — | — | |
| Oracle Corp. | 49 | 52 | 47 | 48 | — | — | |
| Palo Alto Networks Inc. | 106 | 111 | 73 | 75 | — | — | |
| Salesforce Inc. | 134 | 132 | 135 | — | — | — | |
| ServiceNow Inc. | 86 | 82 | 88 | — | — | — | |
| Synopsys Inc. | 49 | 77 | 60 | 65 | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Software & Services | 70 | 65 | 65 | — | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | 48 | 46 | 48 | — | — | — | |
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).
1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.50 = 66
2 Click competitor name to see calculations.
| Short-term activity 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. number of days of receivables outstanding improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Average Payables Payment Period
Automatic Data Processing Inc., average payables payment period calculation, comparison to benchmarks
| Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 61.24 | 82.80 | 64.44 | 57.92 | 48.56 | 44.91 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 6 | 4 | 6 | 6 | 8 | 8 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Accenture PLC | 24 | 16 | 20 | 17 | — | — | |
| Adobe Inc. | 61 | 65 | 46 | 57 | — | — | |
| International Business Machines Corp. | 56 | 47 | 44 | — | — | — | |
| Intuit Inc. | 135 | 81 | 86 | 66 | — | — | |
| Microsoft Corp. | 106 | 99 | 80 | 82 | — | — | |
| Oracle Corp. | 35 | 29 | 26 | 24 | — | — | |
| Palo Alto Networks Inc. | 16 | 23 | 33 | 28 | — | — | |
| Salesforce Inc. | — | — | — | — | — | — | |
| ServiceNow Inc. | 24 | 13 | 24 | — | — | — | |
| Synopsys Inc. | 12 | 14 | 10 | 42 | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Software & Services | 64 | 56 | 48 | — | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | 73 | 68 | 69 | — | — | — | |
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).
1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 61.24 = 6
2 Click competitor name to see calculations.
| Short-term activity 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. |