Stock Analysis on Net
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Stock Analysis on Net

Parker-Hannifin Corp. (NYSE:PH)

This company has been moved to the archive! The financial data has not been updated since February 7, 2023.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Parker-Hannifin Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

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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 6.65 0.01 4.10 3.34 4.17 6.51
Accounts payable, trade 6.68 8.20 5.63 8.04 9.34 8.40
Accrued payrolls and other compensation 1.81 2.49 2.15 2.43 2.79 2.81
Accrued domestic and foreign taxes 0.96 1.16 0.99 0.95 1.30 0.99
Other accrued liabilities 6.49 3.35 3.08 3.17 3.28 3.21
Current liabilities 22.58% 15.22% 15.95% 17.93% 20.87% 21.92%
Long-term debt, excluding payable within one year 37.60 32.36 38.77 37.10 28.19 31.39
Pensions and other postretirement benefits 2.47 5.19 9.56 7.42 7.69 9.08
Deferred income taxes 1.18 2.72 1.94 1.10 1.53 1.43
Other liabilities 2.01 3.14 2.73 2.49 3.43 2.18
Noncurrent liabilities 43.27% 43.41% 53.00% 48.11% 40.84% 44.07%
Total liabilities 65.85% 58.64% 68.95% 66.05% 61.71% 65.99%
Serial preferred stock, $.50 par value; none issued 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, $.50 par value 0.35 0.45 0.46 0.52 0.59 0.58
Additional capital 1.26 1.62 2.11 2.63 3.24 3.51
Retained earnings 60.37 73.33 68.55 72.70 75.89 70.56
Accumulated other comprehensive loss -5.95 -7.70 -12.96 -11.71 -11.51 -12.42
Treasury shares at cost -21.93 -26.40 -27.18 -30.21 -29.96 -28.27
Shareholders’ equity 34.10% 41.29% 30.98% 33.92% 38.25% 33.97%
Noncontrolling interests 0.05 0.08 0.07 0.04 0.04 0.04
Total equity 34.15% 41.36% 31.05% 33.95% 38.29% 34.01%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

Current Liabilities
Current liabilities as a percentage of total liabilities and equity decreased from 21.92% in 2017 to a low of 15.22% in 2021, before sharply increasing to 22.58% in 2022. Within current liabilities, notes payable and long-term debt payable within one year showed a general downward trend through 2021 reaching nearly zero, then dramatically increased to 6.65% in 2022. Accounts payable fluctuated, peaking at 9.34% in 2018, dropping to 5.63% in 2020, and rising again to 6.68% in 2022. Accrued payrolls and other compensation steadily declined from 2.81% to 1.81% over the period, while accrued domestic and foreign taxes remained relatively stable around 1% with minor fluctuations. Other accrued liabilities remained fairly consistent, though nearly doubling from 3.35% in 2021 to 6.49% in 2022.
Noncurrent Liabilities
Noncurrent liabilities increased generally from 44.07% in 2017 to a peak of 53% in 2020, before decreasing to around 43% in 2021 and 2022. Long-term debt excluding the portion payable within one year showed significant volatility, rising from 31.39% in 2017 to 38.77% in 2020, then decreasing to 32.36% in 2021, and rebounding to 37.6% in 2022. Pensions and other postretirement benefits showed a notable decline from 9.08% in 2017 to 2.47% in 2022, indicating potential curtailment of these obligations or revaluation. Deferred income taxes fluctuated moderately, peaking at 2.72% in 2021 but falling back to 1.18% in 2022. Other liabilities remained relatively stable, fluctuating between 2.18% and 3.43% across the years.
Total Liabilities
Total liabilities as a percentage of total liabilities and equity declined from nearly 66% in 2017 to a low of 58.64% in 2021, then increased again to 65.85% in 2022. This pattern corresponds with the observed shifts in both current and noncurrent liabilities, particularly the spike in current liabilities in 2022.
Shareholders' Equity
Shareholders’ equity displayed variability over the years, rising from approximately 34% in 2017 to a high of 41.29% in 2021, before declining to 34.1% in 2022. Retained earnings increased steadily from 70.56% in 2017 to a peak of 75.89% in 2018, then declined to 60.37% by 2022, suggesting earnings retention weakened or distributions increased. Additional capital consistently decreased from 3.51% to 1.26%, implying less capital infusion or share issuance. The value of common stock as a percentage also gradually diminished over time. Accumulated other comprehensive loss showed a steady reduction in negative balance from -12.42% in 2017 to -5.95% in 2022, indicating improvement in comprehensive income factors. Treasury shares at cost decreased in negative impact from -28.27% to -21.93%, reflecting possible share buybacks or revaluations. Overall, total equity closely followed these trends, peaking in 2021 and falling in 2022.
Summary Insights
The data indicates a fluctuating leverage position with a trend toward reduced reliance on current liabilities until 2021, followed by an increase in 2022 largely driven by notes payable and other accrued liabilities. Long-term debt has been variable but remained a substantial component of overall liabilities. The significant reduction in pension and postretirement benefit obligations may have affected long-term liability composition. Equity strengthened until 2021 with increases in retained earnings and reduced comprehensive loss, but both reversed somewhat in 2022. The shifts in treasury shares and additional capital point to active management of the capital structure. The overall financial structure shows dynamic changes, with 2022 exhibiting increased liabilities and weakened equity proportions compared to the previous year.