Parker-Hannifin Corporation (PH)

Inventory turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	12,514,130	12,540,870	12,692,300	12,773,280	12,770,350	12,716,220	12,775,310	12,919,500	12,625,610	12,384,300	11,976,560	11,504,470	11,213,390	11,018,770	10,803,560	10,539,570	10,434,490	9,950,540	9,994,250	10,168,610
Inventory	US$ in thousands	2,839,000	2,822,550	2,806,980	2,872,250	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
Inventory turnover		4.41	4.44	4.52	4.45	4.58	4.29	4.13	4.27	4.34	4.04	3.87	3.68	5.06	4.73	4.68	4.65	4.99	5.24	5.34	5.66

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,514,130K ÷ $2,839,000K
= 4.41

The analysis of Parker-Hannifin Corporation’s inventory turnover ratios over the specified periods reveals fluctuations indicative of operational and inventory management strategies.

Between September 30, 2020, and June 30, 2021, the inventory turnover declined from 5.66 to 4.99, reflecting a decrease in the annualized rate at which inventory is sold and replaced, possibly signifying increased inventory levels, slower sales, or supply chain adjustments. From June 30, 2021, to September 30, 2021, a further decline to 4.65 was observed, continuing the downward trend observed earlier.

Subsequently, a stabilization and slight upward movement occurred through the end of 2021 and into 2022. Specifically, the ratio moved from 4.68 at the end of 2021 to 4.73 by March 2022, indicating marginal improvements in inventory turnover. This upward trend persisted into mid-2022, reaching 5.06 by June 30, 2022, suggesting a period of more efficient inventory management and potentially increased sales velocity.

However, a notable decline emerged again starting in late 2022, with the ratio falling to 3.68 at September 30, 2022, representing a decrease of approximately 27% from the preceding six months, which suggests a period of increased inventory holdings, potential slowdown in sales, or inventory buildup. Afterwards, a gradual recovery was seen, with the ratio climbing to 4.52 by December 31, 2024, and stabilizing around the low 4s in subsequent periods.

Throughout the latter part of the period under review, the inventory turnover exhibited relative stability around the 4.3 to 4.5 range, indicating a consistent yet moderate rate of inventory utilization. The observed oscillations reflect adjustments in inventory levels, sales performance, or shifts in operational efficiency, with a temporary downturn in late 2022 being followed by signs of recovery.

Overall, the pattern suggests that Parker-Hannifin experienced variable inventory management efficiency across the analyzed periods. The fluctuations between higher ratios (above 5) and lower ratios (around 3.68) point to periods of either rapid inventory turnover or inventory buildup, respectively. The recent overall trend shows a stabilization around the 4.3 to 4.5 ratio range, which aligns with typical operational performance in manufacturing firms aiming for a balanced inventory cycle.