Parker-Hannifin Corporation (PH)

Financial leverage ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Total assets	US$ in thousands	29,494,000	28,917,800	28,271,500	29,600,800	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
Total stockholders’ equity	US$ in thousands	13,682,000	13,391,000	13,118,600	12,891,900	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
Financial leverage ratio		2.16	2.16	2.16	2.30	2.43	2.55	2.63	2.80	2.90	3.12	3.27	3.42	2.93	2.52	2.56	2.38	2.42	2.68	2.79	3.03

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,494,000K ÷ $13,682,000K
= 2.16

The financial leverage ratio of Parker-Hannifin Corporation exhibits notable fluctuations over the analyzed period from September 2020 to June 2025. Initially, the ratio was elevated at 3.03 in September 2020, indicating a relatively high degree of financial leverage. Subsequently, the ratio experienced a decline through late 2020 and into early 2021, reaching 2.68 by March 2021 and decreasing further to 2.38 in September 2021. This downward trend suggests a reduction in reliance on debt financing during this timeframe.

In late 2021, the ratio saw an uptick, climbing back to 2.56 in December 2021 and maintaining a relatively stable level around 2.52 to 2.93 through March and June of 2022. The ratio then increased more significantly, peaking at 3.42 in September 2022, highlighting a period of increased leverage. This upward movement could reflect strategic debt utilization to support growth initiatives or acquisitions.

Post-September 2022, the ratio generally trended downward, reaching 3.27 in December 2022, then declining steadily to approximately 2.80 by September 2023. The subsequent quarters showed a gradual further decrease, with ratios around 2.63 in December 2023, 2.55 in March 2024, and continuing down to 2.16 by June 2025.

Overall, the pattern indicates that the company's leverage ratio fluctuated within a moderate range, with periods of both increasing and decreasing leverage. The declining trend towards the later years suggests a strategic shift toward lower reliance on debt, potentially reflecting efforts to improve financial stability or to align with evolving corporate risk management policies. The ratios remaining well below levels typically associated with excessive leverage indicate prudent financial management.