Analysis of Debt

Total Debt (Carrying Amount)
Total Debt (Fair Value)
Weighted-average Interest Rate on Debt

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Total Debt (Carrying Amount)

Parker-Hannifin Corp., balance sheet: debt

US$ in thousands

		Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017
	Notes payable and long-term debt payable within one year
	Long-term debt, excluding payable within one year
	Total notes payable and long-term debt (carrying amount)

Based on: 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30).

Short-term Debt Trends: The amount of notes payable and long-term debt payable within one year fluctuated significantly over the analyzed period. Initially, there was a decline from approximately 1,008 million USD in mid-2017 to around 638 million USD in mid-2018, followed by a smaller decrease to 587 million USD by mid-2019. The figure then increased notably to 810 million USD by mid-2020 but dropped sharply to a minimal level of approximately 2.8 million USD in mid-2021. By mid-2022, it surged dramatically to about 1,724 million USD. These variations suggest episodic refinancing or repayment activities affecting short-term liabilities.
Long-term Debt Excluding Current Portion: The long-term debt, excluding that payable within one year, displayed an overall increasing trend with intermittent volatility. After decreasing from roughly 4,861 million USD in 2017 to approximately 4,319 million USD in 2018, it rose markedly to about 6,521 million USD in 2019 and further increased to 7,652 million USD by 2020. There was a subsequent reduction to 6,582 million USD in 2021, after which a significant rise to approximately 9,756 million USD occurred in 2022. This pattern indicates strategic debt restructuring or new long-term borrowing during the period.
Total Debt Carrying Amount: The total notes payable and long-term debt carrying amount mirrored the combined effects of short-term and long-term debt movements. After an initial decline from about 5,870 million USD in 2017 to 4,957 million USD in 2018, the total debt increased substantially to 7,108 million USD in 2019 and continued upward to 8,462 million USD by 2020. A notable decrease to approximately 6,585 million USD was recorded in 2021, followed by a significant jump to nearly 11,480 million USD in 2022, the highest level in the six-year span. This overall escalation in debt levels by 2022 suggests a considerable increase in leverage or funding requirements during that fiscal year.
Overall Insights: The data reflects a company actively managing its debt structure, with both short-term and long-term borrowings exhibiting substantial variations. The pronounced increases in debt in 2019, 2020, and particularly 2022 indicate phases of significant capital raising or refinancing activities. The minimal short-term debt observed in 2021 stands out as an anomaly, implying possible repayment or reclassification during that year. The cumulative effect is a rising total debt level over the period, pointing toward growing financial leverage.

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Total Debt (Fair Value)

	Jun 30, 2022
Selected Financial Data (US$ in thousands)
Short-term commercial paper notes
Borrowings from foreign banks
Long-term debt
Total notes payable and long-term debt (fair value)
Financial Ratio
Debt, fair value to carrying amount ratio

Based on: 10-K (reporting date: 2022-06-30).

Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt:

Interest rate	Debt amount¹	Interest rate × Debt amount	Weighted-average interest rate²




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