Parker-Hannifin Corporation (PH)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.19 | 1.21 | 1.06 | 0.96 | 0.93 | 0.87 | 0.90 | 0.89 | 0.88 | 1.25 | 1.28 | 1.30 | 2.06 | 1.52 | 1.50 | 1.72 | 1.81 | 1.66 | 1.50 | 1.46 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,950,000K ÷ $5,819,000K
= 1.19
The analysis of Parker-Hannifin Corporation’s current ratio over the specified periods reveals notable fluctuations in liquidity levels. During the fiscal year 2020, the current ratio varied from 1.46 at the end of September 2020 to a peak of 1.66 on March 31, 2021, indicating a relatively comfortable liquidity position. The ratio continued to rise in the first half of 2021, reaching a high of 1.81 on June 30, 2021, before declining modestly to 1.72 by September 30, 2021. This period reflects a trend of improving short-term solvency.
Subsequently, the ratio exhibited a decline through the end of 2021, dropping to 1.50 at year-end, which suggests a reduction in the company's short-term liquidity buffer. The early months of 2022 saw a slight recovery, with the ratio reaching 1.52 at the end of March, followed by a more significant increase to 2.06 on June 30, 2022, signaling a temporary strengthening of liquidity.
However, starting in late 2022 and into 2023, the current ratio exhibited a declining trajectory, reaching notably low levels of 0.88 on June 30, 2023, and 0.89 on September 30, 2023. The ratio stayed relatively stable around this range in late 2023, with minor fluctuations, including a slight increase to 1.06 at the end of December 2024 and to over 1.19 by June 2025.
Overall, the historical trend indicates periods of liquidity robustness followed by significant contraction in recent periods. The ratio approaching and falling below 1.0 in mid-2023 and thereafter suggests potential liquidity challenges, with the company having fewer short-term assets relative to its short-term liabilities during these periods. The recovery in late 2024 and mid-2025 ratios above 1.0 indicates some stabilization and improvement in the company’s liquidity position moving into 2025.
Peer comparison
Jun 30, 2025