Parker-Hannifin Corporation (PH)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	3,531,000	2,844,220	2,082,940	1,315,600	1,746,100
Total assets	US$ in thousands	29,494,000	29,297,800	29,964,500	25,943,900	20,341,200
ROA		11.97%	9.71%	6.95%	5.07%	8.58%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $3,531,000K ÷ $29,494,000K
= 11.97%

The analysis of Parker-Hannifin Corporation's return on assets (ROA) over the specified period reveals notable fluctuations and an overall upward trend. As of June 30, 2021, the ROA stood at 8.58%, indicating a relatively strong efficiency in utilizing assets to generate earnings. In the subsequent year, June 30, 2022, the ROA declined markedly to 5.07%, reflecting a decrease in asset efficiency or profitability from the prior year. This decline may suggest margin compression, increased asset base without proportional earning growth, or external economic pressures impacting asset utilization.

Following this dip, the ROA demonstrated recovery with a rise to 6.95% as of June 30, 2023. This improvement signals a potential stabilization or operational enhancements that better translated assets into earnings. The positive trajectory continued into June 30, 2024, with the ROA reaching 9.71%, indicating stronger asset profitability and efficiency enhancements in that fiscal period. The upward movement persisted into June 30, 2025, culminating in an ROA of 11.97%, which signifies a substantial improvement and indicates that the company is increasingly effective at generating net income from its assets.

Overall, the pattern of the ROA from 2021 through 2025 exhibits an initial decline followed by a consistent and significant upward trend. This progression suggests an improvement in operational efficiency or profitability relative to the company's asset base over the analyzed period. The substantial increase from 6.95% in 2023 to nearly 12% in 2025 underscores a positive development in the company's ability to generate earnings from its assets, reflecting potentially strategic operational improvements, cost efficiencies, or favorable market conditions during the latter years.