Return on Assets (ROA)
since 2005
Calculation
Parker-Hannifin Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to common shareholders1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2022 | 5.07% | = | 100 | × | 1,315,605) | ÷ | 25,943,943) |
| Jun 30, 2021 | 8.58% | = | 100 | × | 1,746,100) | ÷ | 20,341,200) |
| Jun 30, 2020 | 6.11% | = | 100 | × | 1,206,341) | ÷ | 19,738,189) |
| Jun 30, 2019 | 8.60% | = | 100 | × | 1,512,364) | ÷ | 17,576,690) |
| Jun 30, 2018 | 6.92% | = | 100 | × | 1,060,801) | ÷ | 15,320,087) |
| Jun 30, 2017 | 6.35% | = | 100 | × | 983,412) | ÷ | 15,489,904) |
| Jun 30, 2016 | 6.69% | = | 100 | × | 806,840) | ÷ | 12,056,738) |
| Jun 30, 2015 | 8.23% | = | 100 | × | 1,012,140) | ÷ | 12,295,037) |
| Jun 30, 2014 | 7.84% | = | 100 | × | 1,041,048) | ÷ | 13,274,362) |
| Jun 30, 2013 | 7.56% | = | 100 | × | 948,427) | ÷ | 12,540,898) |
| Jun 30, 2012 | 10.31% | = | 100 | × | 1,151,823) | ÷ | 11,170,282) |
| Jun 30, 2011 | 9.64% | = | 100 | × | 1,049,130) | ÷ | 10,886,805) |
| Jun 30, 2010 | 5.59% | = | 100 | × | 554,065) | ÷ | 9,910,382) |
| Jun 30, 2009 | 5.16% | = | 100 | × | 508,515) | ÷ | 9,855,902) |
| Jun 30, 2008 | 9.14% | = | 100 | × | 949,466) | ÷ | 10,386,854) |
| Jun 30, 2007 | 9.83% | = | 100 | × | 830,046) | ÷ | 8,441,413) |
| Jun 30, 2006 | 8.24% | = | 100 | × | 673,167) | ÷ | 8,173,432) |
| Jun 30, 2005 | 8.76% | = | 100 | × | 604,692) | ÷ | 6,898,961) |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in thousands
The financial trajectory between 2005 and 2022 is characterized by a substantial expansion of the asset base and fluctuating net income, which has resulted in a volatile Return on Assets (ROA) profile. While total assets grew nearly four-fold over the period, profitability did not scale at the same rate, leading to a general compression of asset efficiency in the final years of the analysis.
- Asset Growth and Capital Expansion
- A consistent upward trend in total assets is observed, rising from $6.9 billion in 2005 to $25.9 billion in 2022. Significant accelerations in asset accumulation occurred between 2016 and 2017 and again between 2021 and 2022, where assets jumped from $20.3 billion to $25.9 billion in a single year.
- Net Income Performance
- Net income attributable to common shareholders demonstrated overall growth, increasing from $604.7 million in 2005 to $1.32 billion in 2022. However, this growth was non-linear, marked by a significant contraction in 2009 to $508.5 million and a peak in 2021 at $1.75 billion.
- Return on Assets (ROA) Dynamics
- The ROA exhibited three distinct phases. From 2005 to 2012, the ratio was relatively strong, reaching a peak of 10.31% in 2012, despite a sharp temporary decline to 5.16% during the 2009 fiscal year. Between 2013 and 2019, ROA stabilized in a moderate range, fluctuating between 6.35% and 8.60%. In the most recent period from 2020 to 2022, a downward trend is evident, culminating in a period-low ROA of 5.07% in 2022.
- Profitability and Efficiency Correlation
- The decline in ROA toward the end of the observed period is primarily attributable to the disproportionate growth of total assets relative to net income. In 2022, the sharp increase in the asset base significantly diluted the return percentage, even though net income remained substantially higher than 2005 levels.
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Comparison to Competitors
Parker-Hannifin Corp., ROA, long-term trends, comparison to competitors
| Parker-Hannifin Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Jun 30, 2022 | 5.07% | -3.60% | 8.18% | 7.03% | 0.12% | 7.97% | 10.84% | 3.27% |
| Jun 30, 2021 | 8.58% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Jun 30, 2020 | 6.11% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Jun 30, 2019 | 8.60% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Jun 30, 2018 | 6.92% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Jun 30, 2017 | 6.35% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Jun 30, 2016 | 6.69% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Jun 30, 2015 | 8.23% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Jun 30, 2014 | 7.84% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Jun 30, 2013 | 7.56% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Jun 30, 2012 | 10.31% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Jun 30, 2011 | 9.64% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Jun 30, 2010 | 5.59% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Jun 30, 2009 | 5.16% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Jun 30, 2008 | 9.14% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Jun 30, 2007 | 9.83% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Jun 30, 2006 | 8.24% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Jun 30, 2005 | 8.76% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Sector (Capital Goods)
Parker-Hannifin Corp., ROA, long-term trends, comparison to sector (capital goods)
| Parker-Hannifin Corp. | Capital Goods | |
|---|---|---|
| Jun 30, 2022 | 5.07% | 2.84% |
| Jun 30, 2021 | 8.58% | 1.86% |
| Jun 30, 2020 | 6.11% | 0.80% |
| Jun 30, 2019 | 8.60% | 2.72% |
| Jun 30, 2018 | 6.92% | 1.74% |
| Jun 30, 2017 | 6.35% | 1.83% |
| Jun 30, 2016 | 6.69% | 4.09% |
| Jun 30, 2015 | 8.23% | 2.17% |
| Jun 30, 2014 | 7.84% | 3.87% |
| Jun 30, 2013 | 7.56% | 3.45% |
| Jun 30, 2012 | 10.31% | 3.30% |
| Jun 30, 2011 | 9.64% | 3.30% |
| Jun 30, 2010 | 5.59% | 2.70% |
| Jun 30, 2009 | 5.16% | 2.16% |
| Jun 30, 2008 | 9.14% | 3.33% |
| Jun 30, 2007 | 9.83% | 3.89% |
| Jun 30, 2006 | 8.24% | 3.91% |
| Jun 30, 2005 | 8.76% | 3.25% |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Industrials)
Parker-Hannifin Corp., ROA, long-term trends, comparison to industry (industrials)
| Parker-Hannifin Corp. | Industrials | |
|---|---|---|
| Jun 30, 2022 | 5.07% | 3.31% |
| Jun 30, 2021 | 8.58% | 3.40% |
| Jun 30, 2020 | 6.11% | 0.04% |
| Jun 30, 2019 | 8.60% | 2.56% |
| Jun 30, 2018 | 6.92% | 3.16% |
| Jun 30, 2017 | 6.35% | 3.59% |
| Jun 30, 2016 | 6.69% | 4.55% |
| Jun 30, 2015 | 8.23% | 3.52% |
| Jun 30, 2014 | 7.84% | 4.31% |
| Jun 30, 2013 | 7.56% | 3.91% |
| Jun 30, 2012 | 10.31% | 3.38% |
| Jun 30, 2011 | 9.64% | 3.69% |
| Jun 30, 2010 | 5.59% | 3.03% |
| Jun 30, 2009 | 5.16% | 2.24% |
| Jun 30, 2008 | 9.14% | 3.10% |
| Jun 30, 2007 | 9.83% | 3.87% |
| Jun 30, 2006 | 8.24% | 6.41% |
| Jun 30, 2005 | 8.76% | 1.42% |
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), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).