Return on Equity (ROE)
since 2005
Calculation
Parker-Hannifin Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to common shareholders1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2022 | 14.87% | = | 100 | × | 1,315,605) | ÷ | 8,848,011) |
| Jun 30, 2021 | 20.79% | = | 100 | × | 1,746,100) | ÷ | 8,398,307) |
| Jun 30, 2020 | 19.73% | = | 100 | × | 1,206,341) | ÷ | 6,113,983) |
| Jun 30, 2019 | 25.37% | = | 100 | × | 1,512,364) | ÷ | 5,961,969) |
| Jun 30, 2018 | 18.10% | = | 100 | × | 1,060,801) | ÷ | 5,859,866) |
| Jun 30, 2017 | 18.69% | = | 100 | × | 983,412) | ÷ | 5,261,649) |
| Jun 30, 2016 | 17.63% | = | 100 | × | 806,840) | ÷ | 4,575,255) |
| Jun 30, 2015 | 19.83% | = | 100 | × | 1,012,140) | ÷ | 5,104,287) |
| Jun 30, 2014 | 15.63% | = | 100 | × | 1,041,048) | ÷ | 6,659,428) |
| Jun 30, 2013 | 16.53% | = | 100 | × | 948,427) | ÷ | 5,738,426) |
| Jun 30, 2012 | 23.52% | = | 100 | × | 1,151,823) | ÷ | 4,896,515) |
| Jun 30, 2011 | 19.49% | = | 100 | × | 1,049,130) | ÷ | 5,383,854) |
| Jun 30, 2010 | 12.68% | = | 100 | × | 554,065) | ÷ | 4,367,965) |
| Jun 30, 2009 | 11.88% | = | 100 | × | 508,515) | ÷ | 4,279,625) |
| Jun 30, 2008 | 18.05% | = | 100 | × | 949,466) | ÷ | 5,258,971) |
| Jun 30, 2007 | 17.62% | = | 100 | × | 830,046) | ÷ | 4,711,665) |
| Jun 30, 2006 | 15.87% | = | 100 | × | 673,167) | ÷ | 4,241,203) |
| Jun 30, 2005 | 18.10% | = | 100 | × | 604,692) | ÷ | 3,340,147) |
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
Analysis of return on equity (ROE) reveals a period of overall resilience characterized by cyclical fluctuations and significant peaks. The ROE generally fluctuated between 11.88% and 25.37% over the seventeen-year period, reflecting variations in net profitability and the management of the equity base.
- Profitability and ROE Cycles
- An initial period of relative stability was observed from 2005 to 2008, where ROE remained within the 15.87% to 18.10% range. A significant contraction occurred in 2009, with ROE falling to its period low of 11.88%, coinciding with a sharp decline in net income to 508.5 million USD. A strong recovery followed, with ROE climbing to 23.52% by 2012. Following a period of fluctuation between 2013 and 2017, ROE reached a historical peak of 25.37% in 2019.
- Equity Base Dynamics
- Shareholders' equity exhibited a long-term upward trajectory, increasing from 3.34 billion USD in 2005 to 8.85 billion USD by 2022. A notable divergence occurred between 2014 and 2016, during which equity decreased from 6.66 billion USD to 4.58 billion USD. This reduction in the capital base contributed to an uptick in ROE during 2015, as the ratio benefited from a smaller equity denominator despite stable net income. In the final period analyzed, the expansion of equity to its highest level in 2022 coincided with a drop in ROE to 14.87%.
- Net Income Correlation
- Net income attributable to common shareholders showed a general growth trend, rising from 604.7 million USD in 2005 to a peak of 1.75 billion USD in 2021. While earnings grew substantially, the growth in shareholders' equity often offset these gains in terms of percentage return. The most recent decline in ROE in 2022 is attributable to a decrease in net income to 1.32 billion USD occurring simultaneously with a continuing increase in the total equity base.
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Comparison to Competitors
Parker-Hannifin Corp., ROE, 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 | 14.87% | — | 42.25% | 14.45% | 0.62% | 29.74% | 61.86% | 7.16% |
| Jun 30, 2021 | 20.79% | — | 39.37% | 13.06% | -16.17% | 29.85% | 57.62% | 5.29% |
| Jun 30, 2020 | 19.73% | — | 19.56% | 9.44% | 16.04% | 27.23% | 113.60% | -4.88% |
| Jun 30, 2019 | 25.37% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Jun 30, 2018 | 18.10% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Jun 30, 2017 | 18.69% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Jun 30, 2016 | 17.63% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Jun 30, 2015 | 19.83% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Jun 30, 2014 | 15.63% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Jun 30, 2013 | 16.53% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Jun 30, 2012 | 23.52% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Jun 30, 2011 | 19.49% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Jun 30, 2010 | 12.68% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Jun 30, 2009 | 11.88% | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Jun 30, 2008 | 18.05% | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Jun 30, 2007 | 17.62% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Jun 30, 2006 | 15.87% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Jun 30, 2005 | 18.10% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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., ROE, long-term trends, comparison to sector (capital goods)
| Parker-Hannifin Corp. | Capital Goods | |
|---|---|---|
| Jun 30, 2022 | 14.87% | 13.39% |
| Jun 30, 2021 | 20.79% | 8.48% |
| Jun 30, 2020 | 19.73% | 4.42% |
| Jun 30, 2019 | 25.37% | 18.11% |
| Jun 30, 2018 | 18.10% | 11.28% |
| Jun 30, 2017 | 18.69% | 10.13% |
| Jun 30, 2016 | 17.63% | 20.08% |
| Jun 30, 2015 | 19.83% | 10.42% |
| Jun 30, 2014 | 15.63% | 18.16% |
| Jun 30, 2013 | 16.53% | 15.14% |
| Jun 30, 2012 | 23.52% | 17.58% |
| Jun 30, 2011 | 19.49% | 19.63% |
| Jun 30, 2010 | 12.68% | 15.88% |
| Jun 30, 2009 | 11.88% | 13.47% |
| Jun 30, 2008 | 18.05% | 24.97% |
| Jun 30, 2007 | 17.62% | 22.64% |
| Jun 30, 2006 | 15.87% | 22.16% |
| Jun 30, 2005 | 18.10% | 17.27% |
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., ROE, long-term trends, comparison to industry (industrials)
| Parker-Hannifin Corp. | Industrials | |
|---|---|---|
| Jun 30, 2022 | 14.87% | 15.38% |
| Jun 30, 2021 | 20.79% | 15.38% |
| Jun 30, 2020 | 19.73% | 0.24% |
| Jun 30, 2019 | 25.37% | 14.56% |
| Jun 30, 2018 | 18.10% | 17.95% |
| Jun 30, 2017 | 18.69% | 18.24% |
| Jun 30, 2016 | 17.63% | 21.69% |
| Jun 30, 2015 | 19.83% | 16.11% |
| Jun 30, 2014 | 15.63% | 19.68% |
| Jun 30, 2013 | 16.53% | 16.40% |
| Jun 30, 2012 | 23.52% | 17.20% |
| Jun 30, 2011 | 19.49% | 20.10% |
| Jun 30, 2010 | 12.68% | 16.41% |
| Jun 30, 2009 | 11.88% | 12.84% |
| Jun 30, 2008 | 18.05% | 20.74% |
| Jun 30, 2007 | 17.62% | 20.36% |
| Jun 30, 2006 | 15.87% | 32.16% |
| Jun 30, 2005 | 18.10% | 7.80% |
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).