Parker-Hannifin Corporation (PH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,515,697 | 4,450,927 | 4,403,947 | 4,134,481 | 4,101,107 | 4,056,247 | 3,920,841 | 3,587,097 | 3,253,150 | 2,382,218 | 1,971,034 | 1,859,139 | 1,868,972 | 2,397,590 | 2,558,496 | 2,647,823 | 2,496,166 | 2,223,227 | 2,100,053 | 1,796,808 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 33.00% | 33.24% | 33.57% | 32.07% | 33.97% | 35.00% | 34.69% | 33.95% | 31.50% | 24.35% | 21.14% | 21.22% | 21.12% | 26.76% | 29.22% | 31.18% | 29.72% | 30.08% | 29.55% | 27.52% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,515,697K ÷ ($—K + $13,682,000K)
= 33.00%
The analysis of Parker-Hannifin Corporation’s return on total capital (ROTC) over the period from September 2020 to June 2025 reveals a generally upward trend with some fluctuations. Starting at 27.52% as of September 30, 2020, the ROTC experienced a gradual increase during the subsequent quarters, reaching a peak of approximately 31.50% in June 2023 and continuing to improve thereafter.
Throughout 2020 and 2021, the ROTC displayed a steady upward trajectory, with values rising from approximately 27.52% to 31.18%, indicating an enhancement in the company's efficiency at generating returns from its total capital. The notable increase during this period suggests improved operational performance or better capital management.
From late 2021 to mid-2022, the ROTC exhibited a decline, dropping from around 29.22% in December 2021 to approximately 21.12% in June 2022, and maintaining similar levels in the subsequent quarters. This downturn may reflect strategic shifts, market challenges, or increased capital investments that temporarily lowered the return rate.
However, starting in late 2022 and into 2023, the ROTC demonstrated a recovery and significant improvement, rising to 33.95% in September 2023 and further to 34.69% in December 2023. This upward movement suggests a revitalization of operational profitability and efficient capital utilization. Values remained high into mid-2024, peaking at 35.00% in March 2024, before experiencing slight declines into late 2024 and mid-2025, with the metric settling around 33.00% to 33.57%.
Overall, the ROTC trend indicates the company's capacity to generate increasing returns on its total capital over the analyzed period, with notable periods of fluctuation that coincide with operational, strategic, or market-specific factors. The recent data points to a persistently strong performance, maintaining a multiyear high into 2024, and reflective of potentially improved operational efficiencies or favorable market conditions.
Peer comparison
Jun 30, 2025