Parker-Hannifin Corporation (PH)

Working capital 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
Revenue (ttm)	US$ in thousands	19,849,920	19,793,740	19,907,750	19,986,110	19,929,620	19,838,740	19,826,040	19,679,900	19,065,190	18,157,080	17,181,810	16,331,580	15,861,610	15,632,650	15,292,590	14,879,910	14,347,640	13,549,370	13,505,470	13,591,540
Total current assets	US$ in thousands	6,950,000	6,777,140	6,348,460	7,033,700	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
Total current liabilities	US$ in thousands	5,819,000	5,614,470	5,987,290	7,338,030	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
Working capital turnover		17.55	17.02	55.12	—	—	—	—	—	—	12.56	10.86	9.78	2.56	5.54	5.77	6.34	5.69	6.73	8.48	8.82

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $19,849,920K ÷ ($6,950,000K – $5,819,000K)
= 17.55

The analysis of Parker-Hannifin Corporation’s working capital turnover over the period from September 2020 through June 2025 reveals notable fluctuations and trends. Initially, the ratio was relatively high, with a value of 8.82 as of September 30, 2020, and gradually declined throughout 2021, reaching a low of approximately 2.56 by June 30, 2022. This decline suggests a reduced efficiency in utilizing working capital for sales generation during this period, potentially indicative of increased working capital levels or decreased sales volume relative to working capital.

Subsequently, the ratio experienced a sharp reversal, increasing significantly to 9.78 as of September 30, 2022, and continuing upward to reach 10.86 by December 31, 2022. The upward trend persisted into early 2023, with the ratio climbing further to 12.56 by March 31, 2023. These increases point to an improving efficiency in working capital utilization, possibly driven by better management of receivables, inventories, or payables, or a surge in sales relative to working capital.

However, the data from mid-2023 shows that the figures are unavailable or unreported, leading to a gap in the trend analysis for this period. A significant spike is observed in the ratio at the end of 2024, reaching 55.12, which is a considerable deviation from previous levels. This substantial increase may be attributed to a substantial reduction in working capital levels, an extraordinary increase in sales, or other structural changes affecting the ratio calculation.

In 2025, the ratio remains elevated but shows signs of moderating, with values of 17.02 and 17.55 recorded for March and June respectively. These figures, although considerably lower than the peak at the end of 2024, still suggest a relatively high level of working capital efficiency compared to earlier periods.

Overall, the working capital turnover ratio exhibits periods of decline, recovery, and dramatic fluctuations, reflecting potential changes in operational efficiency, working capital management strategies, or sales activity. The extreme values in late 2024 warrant further investigation into underlying events or accounting adjustments that may have influenced such a dramatic shift.