Parker-Hannifin Corporation (PH)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		5.99	5.67	6.03	5.94	6.29
DOH	days	60.93	64.36	60.55	61.43	58.07

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.99
= 60.93

The days of inventory on hand (DOH) for Parker-Hannifin Corporation have shown a fluctuating trend over the past five years. The company had 60.93 days of inventory on hand as of June 30, 2024, which is a slight improvement from the previous year's figure of 64.36 days. Comparing this year's DOH with the figures from the last five years, we observe that the DOH metric has hovered around the range of 58 to 64 days.

A lower DOH value indicates that the company is managing its inventory efficiently and turning it over more quickly, which can lead to reduced holding costs and potential obsolescence risks. Conversely, a higher DOH value may suggest that the company is holding onto inventory for an extended period, tying up capital and potentially facing inventory write-downs.

Therefore, while the slight decrease in DOH from the previous year is a positive sign, it would be beneficial for Parker-Hannifin Corporation to continue monitoring and potentially further optimizing its inventory management strategies to enhance operational efficiency and financial performance.