Parker-Hannifin Corporation (PH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.96% | 36.64% | 36.24% | 36.09% | 35.92% | 35.90% | 35.56% | 34.35% | 33.78% | 31.79% | 30.30% | 29.56% | 29.30% | 29.51% | 29.35% | 29.17% | 27.27% | 26.56% | 26.00% | 25.18% |
| Operating profit margin | 20.75% | 20.57% | 20.17% | 19.94% | 19.61% | 19.46% | 18.78% | 17.34% | 16.35% | 15.71% | 15.88% | 17.06% | 17.81% | 17.88% | 17.61% | 17.29% | 16.73% | 15.93% | 15.24% | 14.28% |
| Pretax margin | 20.69% | 20.32% | 19.83% | 18.26% | 18.04% | 17.70% | 16.89% | 15.23% | 14.06% | 10.43% | 9.15% | 9.47% | 10.18% | 13.78% | 15.15% | 16.16% | 15.66% | 14.46% | 13.44% | 10.98% |
| Net profit margin | 17.79% | 17.14% | 15.87% | 14.47% | 14.27% | 13.95% | 13.28% | 11.92% | 10.93% | 8.28% | 7.34% | 7.67% | 8.30% | 10.82% | 11.88% | 12.61% | 12.17% | 11.34% | 10.59% | 8.74% |
The analysis of Parker-Hannifin Corporation's profitability ratios over the specified period reveals a generally positive trend marked by improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin.
Gross Profit Margin:
From September 30, 2020, to September 30, 2025, the gross profit margin exhibits a consistent upward trajectory. Beginning at 25.18%, it steadily increases over time, reaching approximately 36.96% by June 30, 2025. This indicates that the company has enhanced its ability to generate profit from sales after deducting the cost of goods sold, likely through effective cost management, product mix optimization, or pricing strategies.
Operating Profit Margin:
Similarly, the operating profit margin shows a resilient upward trend throughout the period. Starting at 14.28% in September 2020, it gradually rises, reaching approximately 20.75% by June 2025. Although there are some fluctuations, overall improvements suggest that the company has managed to control operating expenses relative to sales, contributing to higher profitability at the operating level.
Pretax Margin:
The pretax margin reflects more variability compared to gross and operating margins but demonstrates an overall improving pattern. It begins at 10.98% in September 2020, reaching around 20.69% by June 2025. Notably, pretax margins dipped during certain periods (for example, around June 2022), which may be attributable to market conditions, higher non-operating expenses, or fluctuations in other income and expenses. Nonetheless, the trend toward higher pretax margins indicates improved efficiency in pre-tax profitability.
Net Profit Margin:
The net profit margin also shows a strong upward trend after an initial increase from 8.74% in September 2020 to a peak of approximately 17.79% by June 2025. The progressive rise in net margins suggests that the company has effectively managed its overall expenses, including taxes and non-operating items, leading to enhanced bottom-line profitability.
Overall Assessment:
The combined analysis signals a positive trajectory in Parker-Hannifin's profitability ratios. The consistent improvements across gross, operating, pretax, and net profit margins reflect effective operational management, margin expansion strategies, and potentially favorable market conditions or product line enhancements. The trends suggest that the company has strengthened its ability to convert sales into profits at multiple levels, indicating robust and improving profitability over the examined period.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.96% | 14.08% | 14.20% | 13.46% | 13.34% | 13.05% | 12.54% | 11.53% | 10.40% | 9.35% | 8.94% | 9.30% | 10.89% | 12.40% | 12.03% | 12.71% | 11.80% | 10.88% | 10.38% | 9.81% |
| Return on assets (ROA) | 11.97% | 11.73% | 11.17% | 9.77% | 9.71% | 9.36% | 8.87% | 7.93% | 6.95% | 4.93% | 4.13% | 4.18% | 5.07% | 7.50% | 8.11% | 9.27% | 8.58% | 7.74% | 7.22% | 6.00% |
| Return on total capital | 33.00% | 33.24% | 33.57% | 32.07% | 33.97% | 35.00% | 34.69% | 33.95% | 31.50% | 24.35% | 21.14% | 21.22% | 21.12% | 26.76% | 29.22% | 31.18% | 29.72% | 30.08% | 29.55% | 27.52% |
| Return on equity (ROE) | 25.81% | 25.34% | 24.08% | 22.43% | 23.56% | 23.88% | 23.29% | 22.21% | 20.17% | 15.37% | 13.52% | 14.30% | 14.87% | 18.88% | 20.75% | 22.10% | 20.79% | 20.79% | 20.13% | 18.19% |
The analysis of Parker-Hannifin Corporation's profitability ratios over the period captured by the data indicates a general trend of improving profitability metrics, albeit with some fluctuations.
Operating Return on Assets (Operating ROA): Starting at 9.81% in September 2020, this ratio demonstrated a steady upward trajectory, reaching a peak of 14.20% as of December 2024. The ratio suggests enhanced efficiency in generating operating income relative to total assets, reflecting effective operational management and potentially expanding margins or efficiencies in core operations. After reaching this peak, a slight decline occurred but remained relatively high at 13.96% as of June 2025, indicating sustained operational improvements over the period.
Return on Assets (ROA): This broader profitability indicator, considering net income rather than operating income alone, shows more modest growth, beginning at 6.00% in September 2020, ascending gradually to approximately 11.97% by June 2025. The pattern suggests that while operative efficiencies have improved, net income margins have experienced more variability, possibly due to factors like increased interest, taxes, or non-operational expenses impacting net profitability.
Return on Total Capital: This metric reflected robust profitability, starting at 27.52% in September 2020 and generally rising to around 33.00% by mid-2025. The upward trend indicates improved returns on all invested capital, including debt and equity, which underscores effective capital deployment and financial leverage management.
Return on Equity (ROE): The ROE demonstrates fluctuating but overall positive growth. Initially at 18.19% in September 2020, it saw variations with some declines during 2022 but exhibited a notable recovery and upward trend, reaching 25.81% by June 2025. This signifies enhanced shareholder returns and effective management of equity financing.
Overall, the profitability ratios depict a company that has progressively improved its operating efficiency and profitability margins across various measures. The sustained upward trends in Operating ROA and Return on Total Capital suggest successful operational strategies and capital management, while the ROE evolution indicates strengthened investor returns. Periodic declines appear attributable to cyclical factors or short-term disruptions, yet the overarching trend reflects an improving profitability profile.
See also:
Parker-Hannifin Corporation Profitability Ratios (Quarterly Data)