Parker-Hannifin Corporation (PH)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	12,072,000	10,326,900	8,848,010	8,398,310	6,227,220
Debt-to-equity ratio		0.70	0.85	1.10	0.78	1.23

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,469,740K ÷ $12,072,000K
= 0.70

The debt-to-equity ratio of Parker-Hannifin Corporation has shown fluctuations over the past five years. In June 2024, the company's debt-to-equity ratio was 0.70, indicating that for every dollar of equity, the company had $0.70 of debt. This ratio has improved compared to the previous year, where it was 0.85 in June 2023.

Looking further back, in June 2022, the debt-to-equity ratio was higher at 1.10, suggesting a higher level of debt relative to equity in the company's capital structure. The ratio decreased to 0.78 in June 2021, showing a positive trend of reducing debt levels relative to equity. However, in June 2020, the debt-to-equity ratio increased to 1.23, indicating a higher reliance on debt financing compared to equity.

Overall, the trend in the debt-to-equity ratio of Parker-Hannifin Corporation has been somewhat volatile, with fluctuations in the company's leverage levels over the years. It is important to monitor this ratio to assess the company's financial risk and capital structure management.