Parker-Hannifin Corporation (PH)

Days of inventory on hand (DOH)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Inventory turnover		4.41	4.44	4.52	4.45	4.58	4.29	4.13	4.27	4.34	4.04	3.87	3.68	5.06	4.73	4.68	4.65	4.99	5.24	5.34	5.66
DOH	days	82.81	82.15	80.72	82.08	79.65	85.14	88.37	85.57	84.07	90.41	94.35	99.31	72.08	77.19	77.95	78.43	73.13	69.63	68.33	64.46

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.41
= 82.81

The analysis of Parker-Hannifin Corporation's Days of Inventory on Hand (DOH) over the period from September 2020 through June 2025 reveals several noteworthy trends and fluctuations.

Initially, the DOH increased steadily from approximately 64.5 days at the end of September 2020 to a peak of around 99.3 days by September 2022. This escalation indicates that the company was holding inventory for a longer period, which could suggest slower inventory turnover, heightened inventory levels, or strategic stockpiling during this period. The sharp rise in DOH during 2022 notably peaked in Q3 2022, implying potential challenges in inventory management or shifts in production and sales cycles.

Following the peak, a downward trend emerged beginning in late 2022, with DOH declining to approximately 80.7 days by June 2024. This decrease reflects an improvement in inventory efficiency, possibly due to better inventory management practices, adjustments in supply chain operations, or changes in demand dynamics.

Despite the overall decline, DOH experienced minor fluctuations, settling around the mid-80s days towards the mid-2024 to mid-2025 period. Specifically, DOH ranged from approximately 79.7 days at the end of 2024 to about 82.8 days in June 2025, indicating relative stability in inventory holding periods during this latter period.

Overall, the trend exhibits a significant increase in inventory holding periods in 2022 followed by a gradual reduction, moving towards a more normalized level comparable to pre-2022 figures. This pattern reflects internal and external factors impacting inventory management, with potential implications for efficiency, liquidity, and operational responsiveness.