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)
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Receivable Collection Period
Average Payables Payment Period

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

		Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
	Turnover Ratios
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. Days
	Average receivable collection period
	Average payables payment period

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.

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
	Accounts receivable, net of allowance for doubtful accounts
	Short-term Activity Ratio
	Receivables turnover¹
	Benchmarks
	Receivables Turnover, Competitors²
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Microsoft Corp.
	Oracle Corp.
	PayPal Holdings Inc.
	salesforce.com inc.
	ServiceNow Inc.
	Visa Inc.
	Receivables Turnover, Sector
	Software & Services
	Receivables Turnover, Industry
	Information Technology

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
= ÷ =

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.

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
	Accounts payable
	Short-term Activity Ratio
	Payables turnover¹
	Benchmarks
	Payables Turnover, Competitors²
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Microsoft Corp.
	Oracle Corp.
	PayPal Holdings Inc.
	salesforce.com inc.
	ServiceNow Inc.
	Visa Inc.
	Payables Turnover, Sector
	Software & Services
	Payables Turnover, Industry
	Information Technology

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
= ÷ =

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.

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
	Less: Current liabilities
	Working capital

	Revenues
	Short-term Activity Ratio
	Working capital turnover¹
	Benchmarks
	Working Capital Turnover, Competitors²
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Microsoft Corp.
	Oracle Corp.
	PayPal Holdings Inc.
	salesforce.com inc.
	ServiceNow Inc.
	Visa Inc.
	Working Capital Turnover, Sector
	Software & Services
	Working Capital Turnover, Industry
	Information Technology

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
= ÷ =

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.

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
	Short-term Activity Ratio (no. days)
	Average receivable collection period¹
	Benchmarks (no. days)
	Average Receivable Collection Period, Competitors²
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Microsoft Corp.
	Oracle Corp.
	PayPal Holdings Inc.
	salesforce.com inc.
	ServiceNow Inc.
	Visa Inc.
	Average Receivable Collection Period, Sector
	Software & Services
	Average Receivable Collection Period, Industry
	Information Technology

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 ÷ =

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.

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
	Short-term Activity Ratio (no. days)
	Average payables payment period¹
	Benchmarks (no. days)
	Average Payables Payment Period, Competitors²
	Accenture PLC
	Adobe Inc.
	Fidelity National Information Services Inc.
	International Business Machines Corp.
	Intuit Inc.
	Mastercard Inc.
	Microsoft Corp.
	Oracle Corp.
	PayPal Holdings Inc.
	salesforce.com inc.
	ServiceNow Inc.
	Visa Inc.
	Average Payables Payment Period, Sector
	Software & Services
	Average Payables Payment Period, Industry
	Information Technology

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 ÷ =

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.

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

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

Automatic Data Processing Inc. (NASDAQ:ADP)

Analysis of Short-term (Operating) Activity Ratios

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Short-term Activity Ratios (Summary)

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Receivable Collection Period

Average Payables Payment Period