Parker-Hannifin Corporation (PH)

Return on assets (ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	2,844,220	2,082,940	1,315,600	1,746,100	1,201,970
Total assets	US$ in thousands	29,297,800	29,964,500	25,943,900	20,341,200	19,887,800
ROA		9.71%	6.95%	5.07%	8.58%	6.04%

June 30, 2024 calculation

ROA = Net income ÷ Total assets
= $2,844,220K ÷ $29,297,800K
= 9.71%

The return on assets (ROA) of Parker-Hannifin Corporation has shown a positive trend over the past five years. In the most recent fiscal year ending June 30, 2024, the ROA stood at 9.71%, reflecting a significant improvement compared to the previous year's 6.95%. This indicates that the company generated higher profits relative to its total assets in the latest year.

The ROA for 2024 also surpasses the figures for 2022 and 2020, demonstrating a consistent upward trajectory in profitability efficiency over the period. The lowest ROA recorded in the range was in 2022 at 5.07%, while the highest was in 2021 at 8.58%.

Overall, the increasing trend in ROA suggests that Parker-Hannifin Corporation has been effectively utilizing its assets to generate profits, indicating improving operational efficiency and potentially a strong financial performance. This trend bodes well for the company's financial health and indicates positive prospects for future growth and sustainability.