Parker-Hannifin Corporation (PH)
Receivables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,984,900 | 18,807,800 | 15,709,500 | 14,233,900 | 13,372,200 |
| Receivables | US$ in thousands | 217,315 | 174,879 | 180,199 | 169,796 | 135,856 |
| Receivables turnover | 91.96 | 107.55 | 87.18 | 83.83 | 98.43 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $19,984,900K ÷ $217,315K
= 91.96
Based on the data provided for Parker-Hannifin Corporation's receivables turnover over the past five years, there has been a fluctuation in the efficiency of collecting accounts receivable. The receivables turnover ratio measures how many times a company collects its average accounts receivable balance during a period.
The trend in receivables turnover shows a decrease from 2023 to 2024, indicating that the company took longer to collect its accounts receivable in 2024 compared to the previous year. However, it is important to note that in 2024, the receivables turnover ratio of 91.96 is still relatively high, suggesting that the company is efficient in collecting payments from its customers.
Comparing the latest ratio to the ratios in the earlier years, we observe that the receivables turnover was highest in 2023 at 107.55, indicating that the company was most efficient in collecting accounts receivable during that period. The ratios for 2020, 2021, and 2022 were also above 80, showing a consistent trend of effective accounts receivable management.
Overall, while the receivables turnover ratio dipped in 2024, it is necessary to consider other factors such as industry norms and company-specific circumstances to assess the effectiveness of Parker-Hannifin Corporation's accounts receivable management.
Peer comparison
Jun 30, 2024