Parker-Hannifin Corporation (PH)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,068,822 | 4,020,132 | 3,894,334 | 3,594,123 | 3,404,182 | 3,165,435 | 3,032,547 | 3,068,395 | 2,975,035 | 2,904,427 | 2,790,427 | 2,729,937 | 2,514,704 | 2,223,335 | 2,105,113 | 1,798,569 | 1,821,463 | 1,944,975 | 1,980,389 | 2,124,738 |
| Long-term debt | US$ in thousands | 8,469,740 | 10,585,100 | 10,651,400 | 10,641,900 | 8,796,280 | 11,794,600 | 12,437,700 | 12,731,200 | 9,755,820 | 6,588,050 | 6,610,660 | 6,625,690 | 6,582,050 | 6,637,160 | 6,602,310 | 7,057,720 | 7,652,260 | 8,097,920 | 8,141,220 | 7,366,910 |
| Total stockholders’ equity | US$ in thousands | 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 | 6,227,220 | 6,295,990 | 6,330,180 | 6,096,620 |
| Return on total capital | 19.81% | 18.13% | 17.74% | 16.95% | 17.80% | 14.67% | 13.94% | 14.28% | 15.99% | 18.68% | 18.16% | 18.06% | 16.79% | 15.85% | 15.36% | 13.24% | 13.12% | 13.51% | 13.68% | 15.78% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,068,822K ÷ ($8,469,740K + $12,072,000K)
= 19.81%
The return on total capital for Parker-Hannifin Corporation has been fluctuating over the past few quarters. In the most recent quarter ending June 30, 2024, the return on total capital stood at 19.81%, which is an improvement from the previous quarter's ratio of 18.13%. This suggests that the company is generating a higher return for each unit of capital employed.
Looking at the trend over the last few quarters, we observe that the return on total capital has generally been on an upward trajectory since the quarter ending December 31, 2021. This indicates that Parker-Hannifin Corporation has been effectively utilizing its capital to generate profitable returns for its investors.
Despite some fluctuations in the ratios, the overall trend suggests that the company has been successful in improving its efficiency in deploying capital to generate profits. Investors and stakeholders may find this trend encouraging as it indicates a positive performance in terms of generating returns on the capital invested in the business.
Peer comparison
Jun 30, 2024