Parker-Hannifin Corporation (PH)

Quick 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
Cash	US$ in thousands	467,000	408,735	395,507	371,068	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
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
Receivables	US$ in thousands	3,228,000	3,134,620	2,750,670	3,030,040	3,196,980	3,223,710	3,053,830	3,146,570	3,260,170	3,347,950	3,065,220	3,118,490	2,885,260	2,709,560	2,356,850	2,135,580	2,544,100	2,463,620	2,161,720	2,165,480
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
Quick ratio		0.63	0.63	0.53	0.46	0.49	0.46	0.46	0.47	0.48	0.67	0.67	0.66	0.59	0.59	0.54	0.81	1.07	0.99	0.86	0.88

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 analysis of Parker-Hannifin Corporation's quick ratio over the period from September 2020 to June 2025 reveals noteworthy liquidity trends. The quick ratio, which measures the company's ability to meet short-term obligations using its most liquid assets, exhibits significant fluctuations throughout this timeframe.

Initially, the quick ratio was approximately 0.88 as of September 2020, indicating that the company held slightly less than one dollar of liquid assets for every dollar of current liabilities. This ratio slightly declined to approximately 0.86 by the end of 2020 and showed a gradual increase through March 2021, reaching nearly 0.99, approaching a one-to-one liquidity position.

The peak within this period was observed in June 2021, with the ratio exceeding 1.07, suggesting a temporary improvement in liquidity whereby liquid assets sufficiently covered current liabilities. However, this upward trend was not sustained; subsequent quarters experienced declines, with the ratio decreasing to 0.81 by September 2021 and plummeting further to around 0.54 at the end of 2021. This downward trend continued into 2022, with ratios stabilizing around 0.59 in March and June 2022, and then slightly increasing to 0.66 and 0.67 towards the end of 2022.

Throughout 2023, the quick ratio remained relatively stable, fluctuating narrowly between 0.47 and 0.67. The lowest point was recorded in June and September 2023 at approximately 0.48 and 0.47, respectively, reflecting a continued position where liquid assets covered less than half of current liabilities. Nevertheless, towards the end of 2023 and into early 2024, the ratio exhibited a modest recovery, rising to around 0.53 in December 2024 and further to approximately 0.63 in March 2025.

Overall, the trend illustrates that Parker-Hannifin's liquidity position, as measured by the quick ratio, has generally been below or near 0.7 for most of the recent years, with occasional peaks above 1.0. The fluctuations suggest periods of tighter liquidity, especially evident after 2021, highlighting potential challenges in quickly meeting short-term liabilities exclusively through immediate liquid assets. The slight upward movements in early 2025 may denote improved liquidity management but remain below the ideal threshold of 1.0, indicating that liquid assets often represent a modest portion relative to current obligations.