Parker-Hannifin Corp. (NYSE:PH)

The analysis of the selected financial data reveals noteworthy trends in the company's current assets and adjusted current assets over the six-year period from June 30, 2017, to June 30, 2022.

Current Assets

The current assets showed a general upward trend except for the year ending June 30, 2020, where a noticeable decline occurred. Starting from approximately $4,779,718 thousand in 2017, the figure increased moderately to about $5,085,238 thousand in 2018 and surged significantly to $7,673,086 thousand in 2019. However, in 2020, current assets dropped sharply to $4,885,204 thousand, reflecting a considerable contraction. This was followed by recovery and steady growth in the subsequent years, reaching $5,616,750 thousand in 2021 and doubling to $12,046,644 thousand in 2022. The spike in 2022 represents a significant increase, more than doubling the previous year's value, which suggests a substantial enhancement in liquidity or asset repositioning.

Adjusted Current Assets

The trend for adjusted current assets closely mirrors that of the reported current assets, maintaining slightly higher values each year. The adjustments result in a consistently larger value, indicating the inclusion of certain recalibrations or reclassifications that augment the basic current assets figures. Beginning at $4,987,987 thousand in 2017, the adjusted current assets increased to $5,298,102 thousand in 2018 and further to $7,904,675 thousand in 2019. Similar to current assets, there was a decline in 2020 to $5,116,702 thousand, but the amounts remained above the unadjusted current assets for the same period. Following that, the adjusted current assets rose slowly to $5,628,828 thousand in 2021 and saw a substantial jump to $12,056,586 thousand in 2022. This pattern reaffirms the notable liquidity or asset base expansion indicated in the basic current asset figures.

Overall, the financial pattern reveals resilience and significant recovery after the downturn in 2020. The double-digit growth in both current asset categories in 2022 highlights strong asset accumulation or strategic financial adjustments, signifying improved short-term financial strength at the end of the most recent fiscal year.

Total assets

The total assets have shown a consistent upward trend over the observed periods. Starting at approximately $15.49 billion in mid-2017, the asset base slightly declined by mid-2018 but then increased steadily each year afterward. By mid-2022, total assets reached roughly $25.94 billion, representing significant growth over the five-year span. This increase suggests ongoing asset accumulation or valuation appreciation.

Adjusted total assets

Adjusted total assets follow a pattern similar to total assets, beginning at about $15.88 billion in mid-2017. There was a minor decline in mid-2018, with subsequent yearly increases reflected through to mid-2022. The adjusted total assets peaked at approximately $25.84 billion by mid-2022. The proximity of adjusted total assets to total assets throughout the periods indicates relatively consistent adjustment factors and suggests that the adjustments do not drastically alter the asset base's assessment.

The financial data reveals a generally increasing trend in both total liabilities and adjusted total liabilities over the six-year period from June 30, 2017, to June 30, 2022.

Total liabilities

The total liabilities showed a decrease from US$10,222,558 thousand in 2017 to US$9,454,594 thousand in 2018. Following this, there was a significant rise in 2019 reaching US$11,608,538 thousand. The trend continued upward, peaking at US$13,609,660 thousand in 2020. A decline is observed in 2021 where total liabilities decreased to US$11,927,530 thousand, but the amount surged again in 2022 to US$17,084,023 thousand, the highest value during the period.

Adjusted total liabilities

Similarly, adjusted total liabilities followed a close pattern to total liabilities. They decreased from US$10,214,063 thousand in 2017 to US$9,421,706 thousand in 2018, then increased each year up to 2020, peaking at US$13,227,132 thousand. A subsequent decline occurred in 2021 to US$11,373,549 thousand, followed by a notable rise to US$16,776,979 thousand in 2022.

Overall, the data indicates fluctuations with two prominent peaks in 2020 and 2022, suggesting periods of increased leverage or possibly greater financing activity. The decline seen in 2021 might indicate a temporary reduction in liabilities, potentially due to strategic debt repayment or reduced borrowing. The sharp increase in 2022 merits attention as it represents a substantial rise in the company's obligations.

The financial data reveals an upward trend in both shareholders' equity and adjusted total equity over the six-year period from June 30, 2017, to June 30, 2022.

Shareholders' Equity

The shareholders' equity increased consistently each year, starting from approximately 5.26 billion US dollars in mid-2017 and reaching about 8.85 billion US dollars by mid-2022. This steady growth indicates an overall strengthening of the company’s net asset base over the analyzed timeframe. Notably, there was a significant jump between 2020 and 2021, where equity rose by more than 2 billion US dollars, suggesting strong capital retention or reinvestment during that year.

Adjusted Total Equity

Adjusted total equity followed a similar upward trajectory, rising from around 5.66 billion US dollars in 2017 to approximately 9.07 billion US dollars in 2022. Like shareholders' equity, adjusted total equity also experienced a marked increase between 2020 and 2021, reflecting enhanced financial adjustments or revaluations that underpin the company's financial position. The difference between adjusted total equity and shareholders' equity remained relatively stable but showed a slight increase over time, indicating additional book value adjustments contributing to the company's equity composition.

Overall, the data suggests positive trends in the company’s equity base, with consistent annual growth and a notable improvement in the 2020–2021 period. This pattern reflects a solid and possibly expanding financial foundation.

The financial data reveals several important trends over the six-year period examined. Both debt and equity components show considerable variation, impacting the overall capital structure of the entity.

Total Reported Debt

This metric experiences fluctuations with an initial decrease from 5,870 million in 2017 to 4,957 million in 2018, followed by a rise to a peak of 8,462 million in 2020. Subsequently, it declines again in 2021 to approximately 6,585 million, then surges sharply to its highest point at 11,480 million in 2022. This indicates increased leverage particularly in the most recent year.

Shareholders’ Equity

Equity shows a generally upward trajectory throughout the period. Starting at 5,261 million in 2017, it rises steadily to 5,859 million in 2018 and continues moderate growth through 2020. A more pronounced increase occurs in 2021 reaching 8,398 million, with a slight further increase to 8,848 million in 2022. This steady increase suggests strengthening of the company’s net asset base over time.

Total Reported Capital

Combining debt and equity, total reported capital reflects the sum of changes in both components. It decreases slightly from 11,132 million in 2017 to 10,817 million in 2018, then rises progressively to 14,575 million in 2020 and 14,983 million in 2021. A significant jump to 20,328 million in 2022 can be primarily attributed to the marked increase in debt levels during the final year.

Adjusted Total Debt

This adjusted metric mirrors the pattern of total reported debt, starting at 6,084 million in 2017, dipping to 5,159 million in 2018, climbing to 8,602 million in 2020, then decreasing to 6,719 million in 2021 before rising strongly to 11,616 million in 2022. The parallel trends suggest adjustments have a consistent impact across years without altering the general pattern.

Adjusted Total Equity

Adjusted equity increases from 5,661 million in 2017 to 6,255 million in 2018, remains relatively stable around the 6,242 million to 6,615 million range through 2019 and 2020, and then grows noticeably to 8,875 million in 2021. By 2022, it reaches 9,066 million, indicating a sustained underlying strengthening of equity after adjustments.

Adjusted Total Capital

This measure rises steadily from 11,745 million in 2017 to 11,415 million in 2018, continuing growth to 15,217 million in 2020 and 15,594 million in 2021. The most pronounced increase occurs in 2022 when adjusted total capital reaches 20,683 million, driven largely by elevated adjusted debt levels alongside increasing adjusted equity.

Overall, the data indicates the entity has experienced a shift toward greater leverage beginning around 2019, culminating in a significant increase in debt in 2022, while equity has grown steadily but more moderately. The expansions in total and adjusted capital reflect these underlying changes, pointing to heavier reliance on debt financing in recent years with gradual reinforcement of equity capital. This mixed trend suggests that while financial risk may have increased due to higher debt, the company has simultaneously worked to build its equity base, potentially to support growth or acquisitions.

Net Income Attributable to Common Shareholders

The net income attributable to common shareholders demonstrated variability over the six-year period. Starting at approximately $983 million in 2017, it increased moderately to about $1.06 billion in 2018. A significant rise occurred in 2019, reaching around $1.51 billion. However, in 2020, the net income declined to roughly $1.21 billion, potentially reflecting external economic challenges. This was followed by a strong recovery and peak in 2021, hitting approximately $1.75 billion, before falling again in 2022 to about $1.32 billion. Overall, while the trajectory shows fluctuations, the levels remain considerably higher than the initial years.

Adjusted Net Income

The adjusted net income reveals a different pattern relative to net income attributable to common shareholders. It was highest in 2017 at approximately $1.33 billion but then declined in 2018 and 2019 to about $1.18 billion and $1.27 billion, respectively. A notable drop occurred in 2020 to around $719 million, coinciding with the dip in net income during the same period. Contrasting with net income, adjusted net income surged dramatically in 2021, reaching nearly $2.69 billion, more than doubling its previous highest point. However, this value substantially diminished in 2022 to approximately $983 million. The pronounced spike in 2021 suggests the presence of significant adjustments or one-time items during that year.

Overall Analysis

Both net income and adjusted net income demonstrate cyclical tendencies with peaks and troughs across the analyzed periods. The year 2021 stands out with notably high adjusted net income, potentially indicating extraordinary factors influencing the results. The divergence between adjusted net income and net income in certain years, particularly 2021 and 2022, implies that non-operational adjustments materially impacted the financial outcomes. The fluctuations highlight the importance of considering both metrics to obtain a comprehensive understanding of the company's profitability trends over time.