Parker-Hannifin Corporation (PH)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	16,695,000	16,490,700	13,348,800	12,421,600	12,346,900
Inventory	US$ in thousands	2,786,800	2,907,880	2,214,550	2,090,640	1,964,200
Inventory turnover		5.99	5.67	6.03	5.94	6.29

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $16,695,000K ÷ $2,786,800K
= 5.99

The inventory turnover ratio for Parker-Hannifin Corporation has shown some fluctuations over the past five years. The trend indicates that the company is able to sell and replace its inventory at a relatively consistent rate.

In the most recent year, as of June 30, 2024, the inventory turnover ratio was 5.99, which represents the number of times the company's inventory was sold and replaced during the year. This indicates that Parker-Hannifin Corporation is able to efficiently manage its inventory by turning it over almost 6 times in a year.

Comparing this to the previous years, we see a slight increase in inventory turnover from 5.67 in 2023 to 5.99 in 2024, indicating a slight improvement in the efficiency of inventory management. However, the ratios for 2022, 2021, and 2020 were 6.03, 5.94, and 6.29 respectively. These fluctuations suggest some variability in the company's inventory management practices over the years.

Overall, the inventory turnover ratio for Parker-Hannifin Corporation indicates that the company is effectively managing its inventory levels and turning over its inventory at a reasonable rate to support its sales operations. This efficiency in inventory management is a positive indicator of the company's operational performance and financial health.