Parker-Hannifin Corporation (PH)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	16,411,990	16,356,300	16,469,470	16,612,490	16,203,710	15,483,510	14,634,770	13,728,430	13,211,830	13,153,070	12,894,250	12,624,930	12,259,150	11,608,890	11,687,440	11,985,210	12,094,290	12,495,850	12,443,310	12,269,020
Inventory	US$ in thousands	2,786,800	2,966,340	3,092,920	3,028,750	2,907,880	3,067,610	3,095,720	3,130,180	2,214,550	2,330,240	2,307,310	2,264,720	2,090,640	1,898,160	1,870,950	1,795,780	1,964,200	2,011,370	2,014,260	1,790,040
Inventory turnover		5.89	5.51	5.32	5.48	5.57	5.05	4.73	4.39	5.97	5.64	5.59	5.57	5.86	6.12	6.25	6.67	6.16	6.21	6.18	6.85

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,411,990K ÷ $2,786,800K
= 5.89

The inventory turnover for Parker-Hannifin Corporation has shown varying trends over the past few quarters. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a certain period, indicating the efficiency of inventory management.

For Parker-Hannifin Corporation:
- The inventory turnover ratio ranged from a low of 4.39 in September 2022 to a high of 6.85 in September 2019.
- Generally, the inventory turnover increased from 2019 to 2020, reaching a peak in September 2020 at 6.67, then fluctuated around the 6.00 mark until March 2021.
- In the recent quarters, the inventory turnover has trended downwards slightly, with the most recent ratio of 5.89 in June 2024.

Overall, the inventory turnover ratios reflect that Parker-Hannifin Corporation has been able to efficiently manage and turn over its inventory, with a healthy turnover ratio generally above 5.00. However, the recent downward trend may indicate potential challenges the company may be facing in managing its inventory efficiently. Further analysis of the company's operations and industry trends could provide more insight into the reasons behind these fluctuations in inventory turnover.