Parker-Hannifin Corporation (PH)

Net profit margin

		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
Net income (ttm)	US$ in thousands	2,844,215	2,768,208	2,632,523	2,345,909	2,082,936	1,502,811	1,259,939	1,252,302	1,315,605	1,692,512	1,817,648	1,878,399	1,747,045	1,537,023	1,436,466	1,190,040	1,208,188	1,326,140	1,364,792	1,474,604
Revenue (ttm)	US$ in thousands	19,954,000	19,312,100	19,271,150	19,107,110	18,836,130	18,077,990	17,191,440	16,426,780	15,687,760	15,400,500	15,059,880	14,645,580	14,118,560	13,381,960	13,273,130	13,339,290	13,425,410	13,946,280	14,011,920	14,021,370
Net profit margin		14.25%	14.33%	13.66%	12.28%	11.06%	8.31%	7.33%	7.62%	8.39%	10.99%	12.07%	12.83%	12.37%	11.49%	10.82%	8.92%	9.00%	9.51%	9.74%	10.52%

June 30, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $2,844,215K ÷ $19,954,000K
= 14.25%

The net profit margin of Parker-Hannifin Corporation has shown fluctuations over the past few quarters. The net profit margin is a key financial ratio that indicates the percentage of revenue that translates into profit after all expenses have been deducted.

From the data provided, we can see that the net profit margin ranged from a low of 7.33% in March 2023 to a high of 14.33% in March 2024. The trend indicates that the company's profitability has generally been improving over the quarters, with some fluctuations. The net profit margin is a measure of the company's efficiency in managing its expenses relative to its revenue, and higher margins indicate better profitability.

It is important to analyze the factors influencing the fluctuations in the net profit margin, such as changes in revenue, cost of goods sold, operating expenses, and non-operating items. A higher net profit margin could result from higher revenue growth, effective cost management, or improved operational efficiency. Conversely, a lower net profit margin could be due to increased expenses, lower sales volumes, or other financial challenges.

Overall, the trend of increasing net profit margins for Parker-Hannifin Corporation suggests that the company is making progress in enhancing its profitability, which is a positive sign for investors and stakeholders. However, it is essential to continue monitoring and analyzing the factors driving these changes to ensure sustainable long-term financial performance.