Parker-Hannifin Corporation (PH)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	US$ in thousands	422,027	475,182	535,799	733,117	685,514
Short-term investments	US$ in thousands	—	8,390	27,862	39,116	70,805
Receivables	US$ in thousands	217,315	174,879	180,199	169,796	135,856
Total current liabilities	US$ in thousands	7,313,310	7,735,370	5,859,320	3,096,500	3,148,370
Quick ratio		0.09	0.09	0.13	0.30	0.28

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($422,027K + $—K + $217,315K) ÷ $7,313,310K
= 0.09

The quick ratio of Parker-Hannifin Corporation has been variable over the past five years. In the most recent fiscal year ending June 30, 2024, the quick ratio was 0.09, unchanged from the previous year. This indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets.

Comparing this to the quick ratios of previous years, there has been a noticeable downward trend, as the quick ratio was 0.13 in 2022, and 0.30 in 2021. This trend suggests a potential deterioration in the company's liquidity position over the years.

Further analysis is required to understand why the quick ratio has been declining. It could be due to a decrease in liquid assets or an increase in current liabilities. Management should closely monitor this trend and take appropriate actions to improve liquidity and ensure the company's ability to meet its short-term obligations.