Parker-Hannifin Corporation (PH)
Fixed asset turnover
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,954,000 | 19,312,100 | 19,271,150 | 19,107,110 | 18,836,130 | 18,077,990 | 17,191,440 | 16,426,780 | 15,687,760 | 15,400,500 | 15,059,880 | 14,645,580 | 14,118,560 | 13,381,960 | 13,273,130 | 13,339,290 | 13,425,410 | 13,946,280 | 14,011,920 | 14,021,370 |
| Property, plant and equipment | US$ in thousands | 2,775,150 | 2,870,920 | 2,905,740 | 2,840,510 | 2,865,030 | 2,843,800 | 2,839,520 | 2,753,610 | 2,122,760 | 2,174,240 | 2,202,930 | 2,223,530 | 2,266,480 | 2,249,120 | 2,302,140 | 2,292,880 | 2,292,740 | 2,296,990 | 2,335,940 | 1,880,160 |
| Fixed asset turnover | 7.19 | 6.73 | 6.63 | 6.73 | 6.57 | 6.36 | 6.05 | 5.97 | 7.39 | 7.08 | 6.84 | 6.59 | 6.23 | 5.95 | 5.77 | 5.82 | 5.86 | 6.07 | 6.00 | 7.46 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,954,000K ÷ $2,775,150K
= 7.19
Parker-Hannifin Corporation's fixed asset turnover ratio has exhibited some fluctuations over the past few quarters, but overall, it has remained relatively stable within a certain range. The fixed asset turnover ratio measures how efficiently the company generates sales revenue from its investment in fixed assets.
The trend shows an improvement in fixed asset turnover from the third quarter of 2022 to the first quarter of 2023, indicating that the company was able to generate more sales from its fixed assets during that period. However, there was a slight decline in the second and third quarters of 2023 before picking up again in the fourth quarter.
From the fourth quarter of 2023 to the second quarter of 2024, the fixed asset turnover ratio has generally shown an increasing trend, reaching its peak in the second quarter of 2024. This suggests that Parker-Hannifin Corporation has been utilizing its fixed assets more efficiently to generate sales revenue during this period.
Overall, the average fixed asset turnover ratio for the periods analyzed is around 6.5 to 7, indicating that, on average, the company generates approximately $6.50 to $7 in sales for every dollar invested in fixed assets. This level of efficiency in asset utilization reflects positively on the company's operational performance and management of its fixed assets.
Peer comparison
Jun 30, 2024
See also:
Parker-Hannifin Corporation Net Fixed Asset Turnover (Quarterly Data)