Parker-Hannifin Corporation (PH)

Receivables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	19,850,000	19,929,600	19,065,200	15,861,600	14,347,600
Receivables	US$ in thousands	3,228,000	3,196,980	3,136,460	2,885,260	2,509,910
Receivables turnover		6.15	6.23	6.08	5.50	5.72

June 30, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $19,850,000K ÷ $3,228,000K
= 6.15

The receivables turnover ratio for Parker-Hannifin Corporation demonstrates a generally stable pattern over the three-year period from June 30, 2021, to June 30, 2024, with a slight upward trend observed towards the most recent period.

In detail, the ratio was recorded at 5.72 times as of June 30, 2021. This figure decreased marginally to 5.50 times by June 30, 2022, indicating a slight lengthening in the average collection period from the previous year. The decline during this period suggests a modest deterioration in the efficiency of receivables management or changes in credit policies.

Subsequently, a notable improvement is observed, with the receivables turnover increasing to 6.08 times by June 30, 2023. This increase indicates enhanced collection efficiency, as receivables are being converted into cash more frequently within the year. The upward movement continues into the subsequent year, reaching 6.23 times on June 30, 2024, signaling a positive trend in receivable management and an overall improvement in cash conversion cycles.

Looking forward, the ratio remains relatively stable, with a slight decrease to 6.15 times projected for June 30, 2025. This slight dip suggests a marginal slowdown in receivable collections or alterations in sales and credit policies, but the ratio remains significantly improved compared to the initial year.

Overall, the receivables turnover ratio indicates that Parker-Hannifin has enhancing efficiency in collection processes over the recent years, with the highest levels of turnover achieved in the fiscal year ending June 30, 2024. The fluctuations reflect minor variations in collection effectiveness but generally point toward improved cash flow management during the observed period.