Parker-Hannifin Corporation (PH)

Working capital 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
Revenue (ttm)	US$ in thousands	19,954,000	19,312,100	19,271,150	19,107,110	18,836,130	18,077,990	17,191,440	16,426,780	15,687,760	15,400,500	15,059,880	14,645,580	14,118,560	13,381,960	13,273,130	13,339,290	13,425,410	13,946,280	14,011,920	14,021,370
Total current assets	US$ in thousands	6,798,620	6,942,560	6,729,860	6,829,600	6,834,230	7,233,410	7,285,000	7,167,830	12,046,600	8,229,690	7,907,650	5,631,270	5,616,750	5,049,050	4,799,680	4,869,480	5,034,770	5,481,430	5,661,150	8,138,080
Total current liabilities	US$ in thousands	7,313,310	7,994,370	7,497,070	7,667,060	7,735,370	5,788,170	5,703,400	5,498,710	5,859,320	5,406,660	5,257,490	3,283,240	3,096,500	3,036,650	3,207,080	3,328,220	3,148,370	3,673,610	4,091,120	4,157,330
Working capital turnover		—	—	—	—	—	12.51	10.87	9.84	2.54	5.46	5.68	6.24	5.60	6.65	8.33	8.65	7.12	7.71	8.92	3.52

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,954,000K ÷ ($6,798,620K – $7,313,310K)
= —

The working capital turnover ratio for Parker-Hannifin Corporation has shown fluctuations over the periods indicated.

In March 2023, the working capital turnover ratio was 12.51, indicating that the company generated 12.51 times the revenue from its working capital during that period. This high ratio may suggest effective management of working capital to support sales and operations efficiently.

However, the ratio dropped significantly in the following period to 10.87 in December 2023, and then to 9.84 in September 2023. These decreases may indicate potential issues with the management of working capital efficiency during these periods.

Subsequently, the ratio experienced a notable improvement, reaching 8.92 in December 2019. This improvement suggests a more efficient use of working capital to generate sales.

Overall, the fluctuating trend in the working capital turnover ratio for Parker-Hannifin Corporation indicates varying levels of efficiency in converting working capital into revenue over the periods analyzed. Further analysis and comparison with industry benchmarks may provide insights into the company's working capital management performance.