Name: Parker-Hannifin Corp. (NYSE:PH) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

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	1,724,310)	2,824)	809,529)	587,014)	638,466)	1,008,465)
Accounts payable, trade	1,731,925)	1,667,878)	1,111,759)	1,413,155)	1,430,306)	1,300,496)
Accrued payrolls and other compensation	470,132)	507,027)	424,231)	426,285)	427,500)	435,911)
Accrued domestic and foreign taxes	250,292)	236,384)	195,314)	167,312)	198,878)	153,137)
Other accrued liabilities	1,682,659)	682,390)	607,540)	558,007)	502,333)	497,851)
Current liabilities	5,859,318)	3,096,503)	3,148,373)	3,151,773)	3,197,483)	3,395,860)
Long-term debt, excluding payable within one year	9,755,825)	6,582,053)	7,652,256)	6,520,831)	4,318,559)	4,861,895)
Pensions and other postretirement benefits	639,939)	1,055,638)	1,887,414)	1,304,379)	1,177,605)	1,406,082)
Deferred income taxes	307,044)	553,981)	382,528)	193,066)	234,858)	221,790)
Other liabilities	521,897)	639,355)	539,089)	438,489)	526,089)	336,931)
Noncurrent liabilities	11,224,705)	8,831,027)	10,461,287)	8,456,765)	6,257,111)	6,826,698)
Total liabilities	17,084,023)	11,927,530)	13,609,660)	11,608,538)	9,454,594)	10,222,558)
Serial preferred stock, $.50 par value; none issued	—)	—)	—)	—)	—)	—)
Common stock, $.50 par value	90,523)	90,523)	90,523)	90,523)	90,523)	90,523)
Additional capital	327,307)	329,619)	416,585)	462,086)	496,592)	543,879)
Retained earnings	15,661,808)	14,915,497)	13,530,666)	12,777,538)	11,625,975)	10,930,348)
Accumulated other comprehensive loss	(1,543,198)	(1,566,727)	(2,558,875)	(2,059,048)	(1,763,086)	(1,924,204)
Treasury shares at cost	(5,688,429)	(5,370,605)	(5,364,916)	(5,309,130)	(4,590,138)	(4,378,897)
Shareholders’ equity	8,848,011)	8,398,307)	6,113,983)	5,961,969)	5,859,866)	5,261,649)
Noncontrolling interests	11,909)	15,363)	14,546)	6,183)	5,627)	5,697)
Total equity	8,859,920)	8,413,670)	6,128,529)	5,968,152)	5,865,493)	5,267,346)
Total liabilities and equity	25,943,943)	20,341,200)	19,738,189)	17,576,690)	15,320,087)	15,489,904)

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).

The organization has experienced a substantial expansion in its total liabilities over the six-year period, increasing from 10.22 billion USD in 2017 to 17.08 billion USD in 2022. This growth is primarily driven by an aggressive increase in long-term debt and a sharp rise in current obligations during the final fiscal year analyzed.

Liability Structure and Leverage: Long-term debt, excluding portions due within one year, exhibited a strong upward trajectory, rising from 4.86 billion USD in 2017 to 9.76 billion USD in 2022. A significant surge is noted between 2021 and 2022, coinciding with a broader increase in noncurrent liabilities, which grew from 6.83 billion USD to 11.22 billion USD over the period. This suggests a strategic shift toward higher leverage to fund operations or acquisitions.
Current Obligations and Liquidity Trends: Current liabilities remained relatively stable between 2017 and 2021, fluctuating around the 3.1 to 3.4 billion USD range. However, a sharp increase occurred in 2022, with current liabilities jumping to 5.86 billion USD. This spike is largely attributed to a surge in notes payable and long-term debt due within one year, which rose from 2.82 million USD in 2021 to 1.72 billion USD in 2022, as well as a significant increase in other accrued liabilities.
Pension and Deferred Tax Obligations: Pensions and other postretirement benefits showed significant volatility, peaking at 1.89 billion USD in 2020 before declining sharply to 640 million USD by 2022. Deferred income taxes also fluctuated, peaking in 2021 at 554 million USD before decreasing to 307 million USD in 2022, reflecting shifts in taxable versus financial reporting income.
Equity Growth and Capital Allocation: Total equity grew from 5.27 billion USD in 2017 to 8.86 billion USD in 2022. This growth was underpinned by a steady and consistent increase in retained earnings, which rose from 10.93 billion USD to 15.66 billion USD, indicating sustained profitability. Simultaneously, there is evidence of an aggressive share repurchase strategy, as treasury shares at cost increased from 4.38 billion USD in 2017 to 5.69 billion USD in 2022.

Overall, the financial position is characterized by a simultaneous increase in both debt and equity. While the growth in retained earnings strengthens the capital base, the rapid escalation of total liabilities—particularly the spike in short-term debt and the doubling of long-term debt—indicates a significantly more leveraged balance sheet as of June 30, 2022, compared to 2017.

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