Parker-Hannifin Corporation (PH)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	3,530,828	3,392,791	3,158,499	2,891,808	2,844,215	2,768,208	2,632,523	2,346,133	2,083,343	1,503,218	1,260,417	1,252,685	1,315,805	1,691,767	1,816,918	1,876,495	1,745,757	1,536,680	1,430,694	1,187,862
Total stockholders’ equity	US$ in thousands	13,682,000	13,391,000	13,118,600	12,891,900	12,072,000	11,590,900	11,302,600	10,565,400	10,326,900	9,781,300	9,322,380	8,762,520	8,848,010	8,959,870	8,755,080	8,490,780	8,398,310	7,392,200	7,105,980	6,528,960
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%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,530,828K ÷ $13,682,000K
= 25.81%

The analysis of Parker-Hannifin Corporation’s return on equity (ROE) over the period from September 30, 2020, through June 30, 2025, reveals a generally positive trend characterized by periods of fluctuation. Initially, ROE increased from 18.19% on September 30, 2020, to reach a peak of approximately 22.10% on September 30, 2021. This upward movement suggests improving profitability relative to shareholders’ equity during this timeframe, likely driven by enhanced operational efficiencies or favorable market conditions.

Following this peak, there was a downward adjustment observed, with ROE declining to approximately 14.30% by September 30, 2022. This decrease may reflect temporary challenges or shifts in operational performance, market dynamics, or changes in leverage and equity levels. Despite this decline, the ratio exhibited a modest recovery thereafter, ending the calendar year 2023 at approximately 23.29%, and further increasing to 25.34% in the first quarter of 2025.

Throughout the analyzed period, the ROE demonstrates resilience, often returning to or exceeding prior peaks, which indicates that the company has managed to restore and possibly enhance profitability on shareholders’ equity over time. The overall trend suggests a company that has experienced periods of volatility but has generally maintained a strong capacity to generate shareholder returns.

In summary, Parker-Hannifin’s ROE has exhibited a fluctuating yet ultimately upward trajectory over the analyzed duration, reflecting periods of both operational improvement and challenges, with recent figures indicating a robust return on equity approaching or surpassing 25%, indicative of sustained profitability and effective management practices.