Parker-Hannifin Corporation (PH)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	422,027	405,484	382,815	448,926	475,182	534,831	756,055	502,307	535,799	467,711	449,481	478,582	733,117	489,600	564,734	742,394	685,514	697,617	948,355	3,627,390
Short-term investments	US$ in thousands	—	9,968	11,053	7,930	8,390	23,466	21,611	19,504	27,862	38,561	40,511	40,160	39,116	40,270	43,314	33,463	70,805	92,536	145,120	282,102
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
Cash ratio		0.06	0.05	0.05	0.06	0.06	0.10	0.14	0.09	0.10	0.09	0.09	0.16	0.25	0.17	0.19	0.23	0.24	0.22	0.27	0.94

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($422,027K + $—K) ÷ $7,313,310K
= 0.06

The cash ratio of Parker-Hannifin Corporation has exhibited fluctuations over the past few quarters. The cash ratio, which measures the ability of a company to cover its current liabilities with its cash and cash equivalents, has ranged from 0.05 to 0.27 over the past eight quarters.

The lower cash ratios seen in the most recent quarters (0.05 to 0.06) may indicate a declining ability to cover short-term obligations solely with cash assets. However, it's important to note that a cash ratio of 0.05 to 0.06 still implies that the company can cover a small portion of its current liabilities with cash on hand.

In contrast, the cash ratios of 0.19 to 0.27 seen in the earlier quarters indicate a stronger ability to meet short-term obligations with cash reserves. Particularly notable is the exceptionally high cash ratio of 0.94 in the fourth quarter of 2019, suggesting a substantial buildup of cash relative to current liabilities at that time.

Overall, the trend in Parker-Hannifin Corporation's cash ratio indicates a varying ability to cover short-term obligations with cash and cash equivalents. Investors and analysts may want to further investigate the reasons behind the fluctuations in the cash ratio to assess the company's liquidity position and financial health accurately.