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.