Automatic Data Processing Balance Sheet Health
Financial Health criteria checks 5/6
Automatic Data Processing has a total shareholder equity of $4.3B and total debt of $3.0B, which brings its debt-to-equity ratio to 69.7%. Its total assets and total liabilities are $57.1B and $52.7B respectively. Automatic Data Processing's EBIT is $4.7B making its interest coverage ratio 32.2. It has cash and short-term investments of $1.7B.
Key information
69.7%
Debt to equity ratio
US$3.01b
Debt
Interest coverage ratio | 32.2x |
Cash | US$1.67b |
Equity | US$4.32b |
Total liabilities | US$52.75b |
Total assets | US$57.07b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: ADP's short term assets ($48.5B) exceed its short term liabilities ($48.1B).
Long Term Liabilities: ADP's short term assets ($48.5B) exceed its long term liabilities ($4.7B).
Debt to Equity History and Analysis
Debt Level: ADP's net debt to equity ratio (31.2%) is considered satisfactory.
Reducing Debt: ADP's debt to equity ratio has increased from 67.3% to 69.7% over the past 5 years.
Debt Coverage: ADP's debt is well covered by operating cash flow (131.1%).
Interest Coverage: ADP's interest payments on its debt are well covered by EBIT (32.2x coverage).