Parker-Hannifin Corporation (PH)

Quick ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash	US$ in thousands	467,000	422,027	475,182	535,799	733,117
Short-term investments	US$ in thousands	—	-1,034,170	8,390	27,862	39,116
Receivables	US$ in thousands	3,228,000	3,196,980	3,136,460	2,885,260	2,509,910
Total current liabilities	US$ in thousands	5,819,000	7,313,310	7,735,370	5,859,320	3,096,500
Quick ratio		0.63	0.35	0.47	0.59	1.06

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($467,000K + $—K + $3,228,000K) ÷ $5,819,000K
= 0.63

The quick ratio of Parker-Hannifin Corporation has demonstrated notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company's quick ratio stood at 1.06, indicating that its liquid assets were slightly more than sufficient to cover its current liabilities, reflecting a relatively strong liquidity position at that time.

However, by June 30, 2022, the quick ratio declined significantly to 0.59, suggesting a considerable decrease in liquidity relative to current liabilities. This downward trend continued into June 30, 2023, when the quick ratio further declined to 0.47, raising concerns about the company's increasing reliance on less liquid current assets to meet its short-term obligations. The ratio continued to decline, reaching 0.35 as of June 30, 2024, indicating a further weakening of liquidity over this period.

Yet, there was a notable recovery observed by June 30, 2025, with the quick ratio increasing to 0.63. Although this figure still remains below the 1.0 threshold, it signifies an improvement in the company's liquidity position relative to the previous year, possibly reflecting better management of liquid assets or reductions in short-term liabilities.

Overall, the trend illustrates a significant deterioration in Parker-Hannifin's short-term liquidity from mid-2021 through mid-2024, followed by a partial rebound in 2025. The persistent decline below the 1.0 threshold over this period indicates potential challenges in liquidity management, which may warrant further investigation into the company's current asset composition and liability management strategies.