Parker-Hannifin Corporation (PH)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	8,469,740	8,796,280	9,755,820	6,582,050	7,652,260
Total assets	US$ in thousands	29,297,800	29,964,500	25,943,900	20,341,200	19,887,800
Debt-to-assets ratio		0.29	0.29	0.38	0.32	0.38

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,469,740K ÷ $29,297,800K
= 0.29

The debt-to-assets ratio of Parker-Hannifin Corporation has shown some fluctuations over the past five years. As of June 30, 2024, the ratio stands at 0.29, which is consistent with the previous year. This indicates that the company finances around 29% of its assets through debt, while the remaining 71% is financed through equity.

Looking back, in 2022, the ratio was slightly higher at 0.38, but then decreased to 0.32 in 2021 before rising again to 0.38 in 2020. These fluctuations suggest some variability in the company's capital structure and its use of debt to fund its operations and investments.

A lower debt-to-assets ratio indicates that the company has a lower level of financial leverage and may be in a stronger financial position in terms of its ability to meet its debt obligations. However, a very low ratio could also imply underutilization of debt for potential growth opportunities. Conversely, a higher ratio could indicate higher financial risk due to a larger dependency on debt financing.

Overall, the consistent debt-to-assets ratio of 0.29 in 2024 suggests a relatively stable financial position for Parker-Hannifin Corporation in terms of its debt management and asset utilization.