Parker-Hannifin Corporation (PH)

Number of days of payables

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Payables turnover		8.38	8.04	7.71	7.45	11.11
Number of days of payables	days	43.54	45.39	47.36	49.01	32.87

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.38
= 43.54

The number of days of payables for Parker-Hannifin Corporation has exhibited a fluctuating trend over the past five years. As of June 30, 2024, the company had an average payment period of 43.54 days, a slight decrease from the prior year. This suggests that the company took, on average, approximately 43.54 days to pay its suppliers and vendors.

Comparing this to the historical data, there has been a gradual decrease in the number of days of payables since 2021 when it peaked at 49.01 days. This reduction may indicate an improvement in the company's working capital management and efficiency in managing its accounts payable.

The significant decrease observed in 2020, with only 32.87 days, could be attributed to various factors such as changes in payment terms, negotiation with suppliers, or operational efficiencies. However, the subsequent increase in the following years indicates a possible realignment of the company's payment practices.

Overall, monitoring the number of days of payables is crucial for understanding a company's liquidity position and ability to manage its short-term obligations effectively. The decreasing trend in Parker-Hannifin Corporation's payables period suggests a more efficient use of working capital, but it is essential to consider the reasons behind these changes in order to evaluate the company's financial health accurately.