Parker-Hannifin Corporation (PH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	13,682,000	12,072,000	10,326,900	8,848,010	8,398,310
ROE		25.81%	23.56%	20.17%	14.87%	20.79%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,531,000K ÷ $13,682,000K
= 25.81%

The provided data indicates that Parker-Hannifin Corporation's return on equity (ROE) has experienced notable fluctuations over the period from June 2021 to June 2025. Specifically, the ROE was 20.79% as of June 30, 2021, representing a strong level of profitability attributable to shareholders' equity at that time. However, this figure declined significantly to 14.87% by June 30, 2022, suggesting a reduction in profitability or increased equity without a proportional increase in net income during that period.

Following this decline, the ROE demonstrated a recovery trajectory, rising to 20.17% as of June 30, 2023. This rebound implies an improvement in the company's efficiency in generating profit from shareholders' investments. The upward trend continued, with the ROE reaching 23.56% by June 30, 2024, exceeding the earlier peak observed in 2021. This indicates an enhancement in the company's profitability and efficiency in utilizing shareholders' equity.

Looking forward to June 30, 2025, the ROE further increased to 25.81%, representing a sustained improvement and signifying that the company is generating higher returns on its equity base. Overall, the trend reflects a period of volatility followed by consistent improvement in profitability margins relative to shareholder equity, suggesting effective operational or financial management strategies in recent periods. The progressive increase in ROE signals a potentially favorable environment for investors, as the company demonstrates an ability to generate growing returns on shareholders' investments over time.