Parker-Hannifin Corporation (PH)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	29,297,800	29,578,300	29,694,900	29,592,700	29,964,500	30,515,700	30,520,900	29,954,900	25,943,900	22,545,300	22,395,500	20,236,900	20,341,200	19,841,500	19,827,400	19,785,900	19,887,800	20,365,300	21,044,000	19,568,600
Debt-to-assets ratio		0.29	0.36	0.36	0.36	0.29	0.39	0.41	0.43	0.38	0.29	0.30	0.33	0.32	0.33	0.33	0.36	0.38	0.40	0.39	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 few quarters. The ratio stood at 0.29 as of June 30, 2024, indicating that 29% of the company's assets were financed by debt. This was a decrease from the previous quarter, where the ratio was 0.36.

The trend of the debt-to-assets ratio has been somewhat inconsistent, with some quarters showing an increase and others a decrease. Historically, the ratio has ranged from 0.29 to 0.43 over the past few years, with the highest ratio occurring in December 2022 at 0.43.

Overall, a lower debt-to-assets ratio indicates that the company relies less on debt to finance its assets, which can be a positive sign of financial stability. However, it is essential to monitor this ratio over time to assess the company's leverage and financial risk effectively.