Parker-Hannifin Corporation (PH)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	12,535,000	12,772,200	12,605,400	11,475,400	10,442,900
Inventory	US$ in thousands	2,839,000	2,786,800	2,907,880	2,214,550	2,090,640
Inventory turnover		4.42	4.58	4.33	5.18	5.00

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $12,535,000K ÷ $2,839,000K
= 4.42

The inventory turnover ratios for Parker-Hannifin Corporation over the specified periods indicate fluctuations in the company's inventory management efficiency. As of June 30, 2021, the inventory turnover was 5.00, signifying that the company sold and replaced its inventory approximately five times during that fiscal year. This ratio increased slightly to 5.18 by June 30, 2022, suggesting a marginal improvement in sales efficiency or inventory management.

However, a notable decline is observed by June 30, 2023, where the ratio decreased to 4.33. This decline indicates that the company was turning over its inventory less frequently, potentially reflecting slower sales, excess inventory accumulation, or shifts in product mix. The subsequent increase to 4.58 by June 30, 2024, suggests a partial recovery in inventory management efficiency, although it remains below the levels observed in 2022.

By June 30, 2025, the ratio slightly declined again to 4.42, maintaining a level similar to that of the previous year but not returning to the peak observed in 2022. Overall, the trend demonstrates some instability in inventory management, with periods of both improvement and deterioration. The fluctuations highlight the dynamic nature of Parker-Hannifin's operational environment and may warrant further analysis to assess underlying causes such as product demand variability, supply chain conditions, or strategic inventory adjustments.