Parker-Hannifin Corporation (PH)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	16,411,990	16,356,300	16,469,470	16,612,490	16,203,710	15,483,510	14,634,770	13,728,430	13,211,830	13,153,070	12,894,250	12,624,930	12,259,150	11,608,890	11,687,440	11,985,210	12,094,290	12,495,850	12,443,310	12,269,020
Payables	US$ in thousands	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	1,111,760	1,422,010	1,311,730	1,287,420
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

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,411,990K ÷ $1,991,640K
= 8.24

The payables turnover ratio for Parker-Hannifin Corporation has been relatively stable over the past few quarters, ranging between 6.80 and 10.88. This ratio measures how many times the company pays off its accounts payable within a given period. A higher payables turnover ratio indicates that the company is managing its accounts payable efficiently, as it is paying off its suppliers more frequently.

The consistency of the payables turnover ratio suggests that Parker-Hannifin Corporation has been maintaining good relationships with its suppliers and effectively managing its working capital. A consistent payables turnover ratio also indicates that the company is able to meet its financial obligations to suppliers in a timely manner.

Overall, the stable payables turnover ratio of Parker-Hannifin Corporation reflects strong financial management practices and efficient working capital management. It shows that the company is effectively managing its cash flow and maintaining good relationships with its suppliers, which is essential for sustainable business operations.