Parker-Hannifin Corporation (PH)

Current ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total current assets	US$ in thousands	6,950,000	6,798,620	6,834,230	12,046,600	5,616,750
Total current liabilities	US$ in thousands	5,819,000	7,313,310	7,735,370	5,859,320	3,096,500
Current ratio		1.19	0.93	0.88	2.06	1.81

June 30, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,950,000K ÷ $5,819,000K
= 1.19

The current ratio of Parker-Hannifin Corporation has exhibited notable fluctuations over the specified periods. As of June 30, 2021, the current ratio stood at 1.81, indicating that current assets significantly exceeded current liabilities and suggesting a strong short-term liquidity position. By June 30, 2022, this ratio increased to 2.06, reflecting an improvement in liquidity and a higher buffer to meet short-term obligations.

However, a significant decline is observed by June 30, 2023, when the current ratio decreased to 0.88. This downturn signifies that current liabilities surpassed current assets, implying potential liquidity concerns and a reduced ability to cover short-term obligations with current assets. The ratio experienced a slight recovery to 0.93 as of June 30, 2024, but remained below the generally accepted benchmark of 1.0, indicating continued challenges in liquidity management.

By June 30, 2025, the current ratio improved further to 1.19, approaching a more balanced liquidity position, though it still indicates less cushion than in earlier years. Overall, the trend demonstrates a considerable decline from a strong liquidity standing in 2021 to a more modest and cautious position by 2025. This pattern underscores the importance of analyzing underlying asset and liability changes to understand the factors impacting the company's short-term financial health.