Parker-Hannifin Corporation (PH)

Number of days of payables

		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
Payables turnover		8.24	8.33	8.35	8.16	7.90	7.44	7.44	6.80	7.63	7.59	8.07	7.72	7.35	7.48	8.70	9.47	10.88	8.79	9.49	9.53
Number of days of payables	days	44.29	43.83	43.70	44.75	46.20	49.04	49.05	53.66	47.85	48.07	45.21	47.31	49.66	48.78	41.94	38.52	33.55	41.54	38.48	38.30

June 30, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.24
= 44.29

The number of days of payables for Parker-Hannifin Corporation has shown fluctuations over the periods analyzed. The trend indicates that the company takes, on average, around 44 to 49 days to pay its suppliers. There was a noticeable decrease in the number of days of payables from the end of 2020 through mid-2021, suggesting a more efficient management of payables during that time. However, the number of days of payables increased again in late 2021 and has remained relatively stable around the 43 to 49 day range since then.

Overall, the number of days of payables reflects how long it takes for the company to settle its outstanding invoices with suppliers. A lower number of days of payables generally indicates that the company is paying its suppliers more quickly, which may be a positive sign of strong liquidity or good relationships with vendors. Conversely, a higher number of days of payables could suggest either deliberate extension of payment terms to manage cash flow or potential liquidity challenges. Monitoring this ratio over time can provide insights into the company's financial management practices and operational efficiency.