Parker-Hannifin Corporation (PH)

Payables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	12,535,000	12,772,200	12,605,400	11,475,400	10,442,900
Payables	US$ in thousands	2,126,000	1,991,640	2,050,930	1,731,920	1,667,880
Payables turnover		5.90	6.41	6.15	6.63	6.26

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $12,535,000K ÷ $2,126,000K
= 5.90

The payables turnover ratio for Parker-Hannifin Corporation over the observed period demonstrates a degree of fluctuation with some notable trends. As of June 30, 2021, the ratio stood at 6.26, indicating that the company paid its suppliers approximately 6.26 times during the fiscal year. This ratio increased slightly in the subsequent year to 6.63, reflecting a marginally faster rate of paying suppliers or a potential improvement in managing payables.

However, a decline is observed in the following year, June 30, 2023, with the ratio decreasing to 6.15. This suggests a slight slowdown in the company's payment frequency to suppliers compared to the previous year. Moving into the fiscal year ending June 30, 2024, the ratio rose again to 6.41, indicating a modest recovery or increased efficiency in settling payables. Finally, by June 30, 2025, the ratio decreased once more to 5.90, representing the lowest point in the observed period and signaling a possible elongation in the time taken to pay suppliers relative to prior years.

This pattern of fluctuations suggests that Parker-Hannifin has experienced short-term variations in its payables management, possibly influenced by operational, strategic, or liquidity considerations. The overall trend from 2021 to 2025 reveals a slight decrease in the payables turnover ratio, which may indicate a tendency toward lengthening the payment cycle to suppliers or changes in procurement practices. Continuous monitoring of this ratio alongside other liquidity and operational metrics would be essential for a comprehensive understanding of the company's payables management strategy and working capital position.