Parker-Hannifin Corporation (PH)

Debt-to-equity 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-equity ratio		0.70	0.91	0.94	1.01	0.85	1.21	1.33	1.45	1.10	0.74	0.76	0.78	0.78	0.90	0.93	1.08	1.23	1.29	1.29	1.21

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 for Parker-Hannifin Corporation has shown fluctuations over the past few quarters. The ratio was relatively stable around 0.70 to 0.90 from December 2019 to June 2020. However, it started increasing steadily from September 2020 until March 2021, reaching a peak of 1.33 in December 2022. This indicates that the company's level of debt relative to equity was higher during this period.

Subsequently, there was a slight decrease in the ratio from December 2022 to June 2023, but it surged again to 1.21 in September 2023. From September 2023 to March 2024, there was a gradual decrease in the ratio, suggesting a reduction in the proportion of debt compared to equity.

The latest data point available as of June 30, 2024, shows the debt-to-equity ratio at 0.70, which is significantly lower compared to the previous quarters. This indicates a favorable shift towards a lower level of debt relative to equity, which may signify improved financial stability or more conservative financing strategies by the company.

Overall, while there have been fluctuations in the debt-to-equity ratio for Parker-Hannifin Corporation, the recent decrease in the ratio suggests a potentially healthier financial position or a shift in capital structure towards a lower reliance on debt financing.