Parker-Hannifin Corporation (PH)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,516,000 | 4,101,100 | 3,253,560 | 1,869,480 | 2,496,990 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,682,000 | 12,072,000 | 10,326,900 | 8,848,010 | 8,398,310 |
| Return on total capital | 33.01% | 33.97% | 31.51% | 21.13% | 29.73% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,516,000K ÷ ($—K + $13,682,000K)
= 33.01%
The analysis of Parker-Hannifin Corporation's return on total capital (ROTC) over the period from June 30, 2021, through June 30, 2025, indicates notable fluctuations and generally positive trends.
In fiscal year 2021, the ROTC stood at 29.73%, reflecting a robust utilization of total capital to generate earnings. However, this metric experienced a decline in the subsequent year, reaching 21.13% on June 30, 2022, suggesting a decrease in capital efficiency or a potential shift in operational dynamics during that period.
The year ending June 30, 2023, saw a substantial recovery, with the ROTC increasing to 31.51%. This resurgence surpassed the previous year's figure, indicating improved operational performance and more effective use of total capital resources. The positive trend continued into the fiscal year ending June 30, 2024, when the ROTC further increased to 33.97%, reaching the highest level within the analyzed period. This suggests not only a consistent improvement in capital efficiency but potentially favorable market conditions or internal strategic initiatives enhancing operational profitability.
In the most recent period available, ending June 30, 2025, the ROTC slightly declined to 33.01%. Although marginally lower than the previous year’s peak, the ratio remains significantly higher than the 2022 level, indicating sustained enhancements in capital utilization and operational performance over the analyzed timeframe.
Overall, the examined data demonstrates a cyclical pattern with an initial decline, followed by a robust and sustained recovery, culminating in a relatively stable high level of return on total capital. The trend reflects improved profitability and efficiency in deploying total capital resources, with the period ending on a positive note.
Peer comparison
Jun 30, 2025