Parker-Hannifin Corporation (PH)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	4,068,822	4,020,132	3,894,334	3,594,123	3,404,182	3,165,435	3,032,547	3,068,395	2,975,035	2,904,427	2,790,427	2,729,937	2,514,704	2,223,335	2,105,113	1,798,569	1,821,463	1,944,975	1,980,389	2,124,738
Interest expense (ttm)	US$ in thousands	506,495	544,405	572,666	590,568	573,894	487,988	399,267	313,696	255,252	244,240	241,798	243,428	250,036	264,327	284,262	304,163	308,161	283,684	251,128	215,755
Interest coverage		8.03	7.38	6.80	6.09	5.93	6.49	7.60	9.78	11.66	11.89	11.54	11.21	10.06	8.41	7.41	5.91	5.91	6.86	7.89	9.85

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,068,822K ÷ $506,495K
= 8.03

Parker-Hannifin Corporation's interest coverage ratio has shown some fluctuations over the past few quarters. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a company's better ability to meet its interest obligations.

Looking at the data provided, we can see that the interest coverage ratio for Parker-Hannifin Corporation has generally been healthy, ranging from a low of 5.91 to a high of 11.89 over the past two years. This suggests that the company has had sufficient earnings to cover its interest payments comfortably.

The fluctuations in the interest coverage ratio over the quarters may be driven by changes in the company's operating income and interest expenses. It is important to note that a consistently high or increasing interest coverage ratio is typically seen as a positive indicator of a company's financial health and ability to handle its debt obligations.

Overall, based on the data provided, Parker-Hannifin Corporation appears to have maintained a solid interest coverage ratio, indicating that it has been able to consistently cover its interest expenses with its operating income.