Parker-Hannifin Corporation (PH)

Days of sales outstanding (DSO)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Receivables turnover		6.15	6.23	6.08	5.50	5.72
DSO	days	59.36	58.55	60.05	66.39	63.85

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.15
= 59.36

The analysis of Parker-Hannifin Corporation’s Days of Sales Outstanding (DSO) over the specified period indicates variations that reflect the company's effectiveness in managing its receivables. At the close of fiscal year June 30, 2021, the DSO was approximately 63.85 days, which suggests an average collection period that aligns with typical industrial sector benchmarks.

In the subsequent year, June 30, 2022, the DSO increased slightly to 66.39 days, implying a marginal elongation in the collection cycle. This uptick could be indicative of changes in credit policies, customer payment behaviors, or industry conditions impacting receivables. Nevertheless, the DSO remained within a close range, suggesting stable receivables management during this period.

By June 30, 2023, a notable decrease to approximately 60.05 days was observed, reflecting an improvement in collection efficiency or potentially tighter credit controls. This reduction highlights a positive shift towards more prompt cash inflow relative to sales, which can enhance liquidity and reduce working capital requirements.

The trend continued into June 30, 2024, with the DSO further decreasing to approximately 58.55 days. This ongoing decline suggests sustained improvements in receivables collection processes or customer payment patterns, contributing to a more favorable cash conversion cycle.

As of June 30, 2025, the DSO slightly increased again to about 59.36 days. Despite this modest rise, the DSO remains lower than the levels observed in 2021 and 2022, indicating that the company has maintained overall progress in managing receivables efficiently over the analyzed period.

Overall, the company demonstrated a trend of improving collections from 2021 through 2024, with a slight reversal in 2025. These fluctuations in DSO can reflect the dynamics of customer creditworthiness, economic conditions, and internal receivables management strategies. The general pattern indicates an effort toward optimizing working capital through enhanced receivables management, leading to a more efficient cash flow cycle over the analyzed timeframe.