Parker-Hannifin Corporation (PH)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.15	6.31	7.24	6.60	6.23	6.15	6.49	6.25	5.85	5.42	5.61	5.24	5.50	5.77	6.49	6.97	5.64	5.50	6.25	6.28
DSO	days	59.36	57.80	50.43	55.34	58.55	59.31	56.22	58.36	62.42	67.30	65.12	69.70	66.39	63.26	56.25	52.39	64.72	66.37	58.42	58.15

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 period from September 30, 2020, through June 30, 2025, reveals notable fluctuations with an overall trend towards improved receivables collection efficiency.

Initially, in September 2020, the DSO was approximately 58.15 days, indicating that it took just over 58 days on average to convert receivables into cash. During the subsequent quarters, the DSO experienced variability, reaching a peak of about 69.70 days in September 2022. This increase suggests that at that time, the company's collection period was lengthening, possibly reflecting tighter credit policies, challenging economic conditions, or increased customer payment delays.

Following this peak, a gradual reduction in DSO is observed, with the metric decreasing to approximately 56.22 days by the end of 2023. The decline during this period indicates an improvement in receivables management, as the company was able to collect outstanding amounts more quickly. This trend continued into the first half of 2024, with some minor fluctuations, ultimately reaching a low of 50.43 days in December 2024, which suggests a more efficient collection process.

In the most recent reported periods, the DSO slightly increased again to approximately 59.36 days in June 2025. This minor uptick could denote minor setbacks in collection speed or seasonal variations but overall remains below the earlier peak levels observed in 2022.

Overall, the company's DSO trend demonstrates periods of increase and decrease, with a general downward trajectory from its peak in late 2022 towards a more efficient receivables collection by the end of 2024, followed by a slight upward movement in the latest period. This pattern reflects a dynamic receivables management environment, influenced potentially by macroeconomic factors, customer credit policies, and operational efficiencies within Parker-Hannifin.