ADP Quick Ratio Analysis
Higher than 5% of Industrials sector peers
Updated 3033h ago·SEC filings & market data
Key Takeaway
Automatic Data Processing (ADP) has a quick ratio of 0.13x, meaning the company holds only $0.13 in highly liquid assets (cash, marketable securities, and receivables) for every $1 of current liabilities due within a year.
Sector Performance
5th percentileADP
0.13x
Sector Median
0.61x
Sector Avg
2.02x
Deep Analysis
Automatic Data Processing (ADP) has a quick ratio of 0.13x, meaning the company holds only $0.13 in highly liquid assets (cash, marketable securities, and receivables) for every $1 of current liabilities due within a year.
This is far below the sector median of 0.74x, placing ADP at the 0th percentile among its Industrials peers—the lowest possible rank. Because the year-over-year change and quarter-over-quarter change are both listed as N/A, no trend can be determined from the eight-quarter history, which shows only the single current value. The combination of an extremely low quick ratio with no observable trend signals that ADP currently has minimal short-term liquidity coverage, which could elevate financial risk if cash flows tighten. This metric does not support the overall NEUTRAL verdict; it introduces a specific liquidity concern that would typically warrant a more cautious view.
Frequently Asked Questions
What does the Quick Ratio tell investors about ADP?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does ADP's Quick Ratio compare to its sector?
ADP's Quick Ratio of 0.13x compares to a Industrials sector median of 0.61x, placing it in the 5th percentile.
Who are ADP's closest peers by Quick Ratio?
The closest Industrials peers by Quick Ratio include: PLUG (0.61x), MMM (0.60x), AME (0.59x), AVY (0.67x), RSG (0.54x).
Learn More About Quick Ratio
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.13x
Sector Median
0.61x
Sector Avg
2.02x
How ADP's Quick Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.