Parker-Hannifin Corporation (PH)

Payables 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
Payables	US$ in thousands	2,126,000	1,980,970	1,794,880	1,953,480	1,991,640	1,964,210	1,971,940	2,036,750	2,050,930	2,080,150	1,966,760	2,018,210	1,731,920	1,732,420	1,597,020	1,636,270	1,667,880	1,551,460	1,343,010	1,264,990
Payables turnover		5.89	6.33	7.07	6.54	6.41	6.47	6.48	6.34	6.16	5.95	6.09	5.70	6.47	6.36	6.76	6.44	6.26	6.41	7.44	8.04

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,514,130K ÷ $2,126,000K
= 5.89

The payables turnover ratio for Parker-Hannifin Corporation exhibits a notable downward trend from September 30, 2020, reaching its lowest point around March 31, 2023, with a value of approximately 5.95. This decline suggests that the company was taking longer to pay its suppliers during this period, potentially indicating tighter liquidity management, an attempt to optimize cash flow, or changes in payment terms with suppliers.

Following this trough, the ratio demonstrates a gradual recovery, rising to approximately 6.48 by December 31, 2023, and maintaining a relatively stable level through the first half of 2024. This increase indicates an acceleration in the company's payments to suppliers, possibly reflecting improved liquidity, shifts in procurement policies, or supplier negotiations favoring shorter payment cycles.

Overall, the payables turnover fluctuates within a range roughly between 5.89 and 8.04 over the analyzed timeframe. The pattern suggests periods of adjustment in the company's payment practices, potentially aligned with broader operational or financial strategy changes. The recent upward trend towards the end of the period implies a phase of more prompt payments, which may contribute to stronger supplier relationships or reflect a strategic emphasis on maintaining or improving credit terms.