Parker-Hannifin Corporation (PH)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.46% | 12.32% | 15.03% | 12.73% | 7.67% |
| Operating profit margin | 20.36% | 18.10% | 18.94% | 17.28% | 14.71% |
| Pretax margin | 17.98% | 14.24% | 10.27% | 15.78% | 11.27% |
| Net profit margin | 14.23% | 11.07% | 8.37% | 12.27% | 8.99% |
Parker-Hannifin Corporation has shown an improving trend in profitability over the past five years, as indicated by its profitability ratios. The gross profit margin has steadily increased from 7.67% in 2020 to 16.46% in 2024, which suggests the company has become more efficient in managing its production costs and generating revenue.
The operating profit margin has also shown consistent growth, reaching 20.36% in 2024 from 14.71% in 2020. This indicates that the company has been able to control its operating expenses effectively while increasing its operating income.
The pretax margin has fluctuated over the years but has shown an overall positive growth trend. It increased from 11.27% in 2020 to 17.98% in 2024, indicating that the company has been able to improve its profitability before accounting for taxes.
Similarly, the net profit margin has experienced a significant increase from 8.99% in 2020 to 14.23% in 2024. This demonstrates that Parker-Hannifin Corporation has been successful in managing its overall expenses, including taxes, to increase its bottom line profitability.
Overall, the improving trend in all profitability ratios indicates that Parker-Hannifin Corporation has been effectively managing its costs, increasing its efficiency, and enhancing its overall profitability over the years.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.89% | 11.36% | 11.47% | 12.09% | 9.89% |
| Return on assets (ROA) | 9.71% | 6.95% | 5.07% | 8.58% | 6.04% |
| Return on total capital | 19.81% | 17.01% | 10.05% | 16.66% | 13.07% |
| Return on equity (ROE) | 23.56% | 20.17% | 14.87% | 20.79% | 19.30% |
Parker-Hannifin Corporation has exhibited a consistent improvement in its profitability ratios over the past five years.
The Operating Return on Assets (Operating ROA) has been steadily increasing, reaching 13.89% in 2024 from 9.89% in 2020. This indicates that the company is effectively generating operating income relative to its total assets.
Similarly, the Return on Assets (ROA) has shown a positive trend, with a notable increase from 6.04% in 2020 to 9.71% in 2024. This ratio reflects the company's ability to generate profit from its assets.
The Return on Total Capital has also experienced a gradual upward trajectory, reaching 19.81% in 2024 from 13.07% in 2020. This suggests that Parker-Hannifin is efficiently utilizing both equity and debt to generate returns for its investors.
Lastly, the Return on Equity (ROE) has consistently improved over the years, highlighting the company's ability to generate profit for its shareholders. The ROE increased from 19.30% in 2020 to 23.56% in 2024, demonstrating the company's effectiveness in using shareholders' equity to generate earnings.
Overall, Parker-Hannifin Corporation's profitability ratios indicate a positive performance trend, showcasing the company's operational efficiency and ability to generate returns for its investors.