Parker-Hannifin Corporation (PH)

Debt-to-capital 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 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
Debt-to-capital ratio		0.41	0.48	0.49	0.50	0.46	0.55	0.57	0.59	0.52	0.42	0.43	0.44	0.44	0.47	0.48	0.52	0.55	0.56	0.56	0.55

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,469,740K ÷ ($8,469,740K + $12,072,000K)
= 0.41

The debt-to-capital ratio of Parker-Hannifin Corporation has exhibited some fluctuations over the past few quarters, ranging from 0.41 to 0.59. This ratio measures the proportion of debt in the company's capital structure. A lower ratio suggests a lower reliance on debt financing, while a higher ratio indicates a greater portion of debt in the capital structure.

From the trend observed, it appears that the company's debt-to-capital ratio has varied within a relatively narrow range in recent quarters, hovering mostly between 0.41 and 0.59. However, there has been some fluctuation in the ratio, indicating changes in the company's debt levels and capital structure.

The highest ratio recorded was 0.59, which occurred in the Sep 30, 2022, quarter, suggesting a higher proportion of debt relative to total capital during that period. Conversely, the lowest ratio of 0.41 was reported in the Jun 30, 2024, quarter, indicating a relatively lower reliance on debt financing at that point in time.

Overall, a debt-to-capital ratio of approximately 0.41 to 0.59 reflects a moderate level of debt in Parker-Hannifin Corporation's capital structure, with variations occurring across different reporting periods. This suggests that the company maintains a balanced approach to debt financing relative to its overall capital.