Parker-Hannifin Corporation (PH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	12,072,000	10,326,900	8,848,010	8,398,310	6,227,220
ROE		23.56%	20.17%	14.87%	20.79%	19.30%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,844,220K ÷ $12,072,000K
= 23.56%

Parker-Hannifin Corporation's return on equity (ROE) has shown an upward trend over the past five years. The ROE increased from 19.30% in June 2020 to 23.56% in June 2024, indicating an improvement in the company's ability to generate profits from shareholders' equity.

The company's ROE was relatively stable between June 2020 and June 2023, ranging from 19.30% to 20.17%. However, there was a noticeable increase in ROE to 23.56% in June 2024, suggesting that the company has become more efficient in utilizing its equity to generate earnings for shareholders.

Overall, Parker-Hannifin Corporation's ROE performance reflects a positive trend, demonstrating the company's effectiveness in generating profits relative to shareholders' equity over the past five years. This improvement in ROE can be seen as a positive indicator of the company's financial health and operational efficiency.