Parker-Hannifin Corporation (PH)

Quick 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	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
Receivables	US$ in thousands	217,315	201,880	185,389	164,838	174,879	204,318	209,597	243,604	180,199	189,041	158,980	175,157	169,796	155,501	141,065	130,179	135,856	2,379,890	2,150,830	2,150,010
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
Quick ratio		0.09	0.08	0.08	0.08	0.09	0.13	0.17	0.14	0.13	0.13	0.12	0.21	0.30	0.23	0.23	0.27	0.28	0.86	0.79	1.46

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 shown fluctuations over the past several quarters, ranging from a low of 0.08 to a high of 1.46. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its most liquid assets.

The quick ratio has generally been below 1 in recent quarters, suggesting potential liquidity challenges. The ratio hit a low point of 0.08 in multiple quarters, indicating a limited ability to cover current liabilities with its quick assets. However, there were periods where the quick ratio improved, reaching 0.30 and 0.27 in the first half of 2021.

The significant variability in the quick ratio may signal fluctuations in the company's ability to manage its short-term financial obligations effectively and efficiently. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's liquidity position and its ability to weather potential financial uncertainties in the future.