Total Asset Turnover
since 2005
Calculation
Parker-Hannifin Corp., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Jun 30, 2022 | 0.61 | = | 15,861,608) | ÷ | 25,943,943) |
| Jun 30, 2021 | 0.71 | = | 14,347,640) | ÷ | 20,341,200) |
| Jun 30, 2020 | 0.69 | = | 13,695,520) | ÷ | 19,738,189) |
| Jun 30, 2019 | 0.81 | = | 14,320,324) | ÷ | 17,576,690) |
| Jun 30, 2018 | 0.93 | = | 14,302,392) | ÷ | 15,320,087) |
| Jun 30, 2017 | 0.78 | = | 12,029,312) | ÷ | 15,489,904) |
| Jun 30, 2016 | 0.94 | = | 11,360,753) | ÷ | 12,056,738) |
| Jun 30, 2015 | 1.03 | = | 12,711,744) | ÷ | 12,295,037) |
| Jun 30, 2014 | 1.00 | = | 13,215,971) | ÷ | 13,274,362) |
| Jun 30, 2013 | 1.04 | = | 13,015,704) | ÷ | 12,540,898) |
| Jun 30, 2012 | 1.18 | = | 13,145,942) | ÷ | 11,170,282) |
| Jun 30, 2011 | 1.13 | = | 12,345,870) | ÷ | 10,886,805) |
| Jun 30, 2010 | 1.01 | = | 9,993,166) | ÷ | 9,910,382) |
| Jun 30, 2009 | 1.05 | = | 10,309,015) | ÷ | 9,855,902) |
| Jun 30, 2008 | 1.17 | = | 12,145,605) | ÷ | 10,386,854) |
| Jun 30, 2007 | 1.27 | = | 10,718,059) | ÷ | 8,441,413) |
| Jun 30, 2006 | 1.15 | = | 9,385,888) | ÷ | 8,173,432) |
| Jun 30, 2005 | 1.19 | = | 8,215,095) | ÷ | 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
Between 2005 and 2022, there is a distinct divergence between the growth of net sales and the growth of total assets, resulting in a long-term decline in the total asset turnover ratio. While both metrics increased in absolute terms over the seventeen-year period, the expansion of the asset base significantly outpaced the growth in revenue.
- Revenue and Asset Growth Trends
- Net sales increased from approximately 8.2 billion USD in 2005 to 15.9 billion USD in 2022. During the same timeframe, total assets experienced a more aggressive ascent, rising from approximately 6.9 billion USD to 25.9 billion USD. The acceleration of asset accumulation, particularly after 2016, has fundamentally altered the company's asset utilization profile.
- Asset Turnover Performance Phases
- From 2005 to 2014, the total asset turnover ratio remained relatively stable, fluctuating within a range of 1.00 to 1.27. During this decade, the company maintained an efficiency level where it generated at least one dollar of sales for every dollar of assets employed, peaking in 2007 at 1.27.
- A sustained downward trend emerged after 2014, with the ratio falling below the 1.00 threshold in 2016. This decline continued through 2022, reaching a period low of 0.61. This trajectory indicates a systematic reduction in the efficiency with which assets are being leveraged to generate sales.
- Operational Efficiency Insights
- The most pronounced deterioration in efficiency is observed between 2017 and 2022. While net sales grew by approximately 32% during this specific window, total assets expanded by approximately 67%. This imbalance suggests that significant capital investments or acquisitions were made that have not yet resulted in a proportional increase in top-line revenue, leading to the compression of the turnover ratio from 0.78 in 2017 to 0.61 in 2022.
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Comparison to Competitors
Parker-Hannifin Corp., total asset turnover, 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 | 0.61 | 0.49 | 0.69 | 0.59 | 0.39 | 0.57 | 1.25 | 0.42 |
| Jun 30, 2021 | 0.71 | 0.45 | 0.58 | 0.58 | 0.36 | 0.53 | 1.32 | 0.40 |
| Jun 30, 2020 | 0.69 | 0.38 | 0.50 | 0.56 | 0.29 | 0.51 | 1.29 | 0.35 |
| Jun 30, 2019 | 0.81 | 0.57 | 0.65 | 0.65 | 0.33 | 0.63 | 1.26 | 0.55 |
| Jun 30, 2018 | 0.93 | 0.86 | 0.66 | 0.70 | 0.37 | 0.72 | 1.20 | 0.50 |
| Jun 30, 2017 | 0.78 | 1.01 | 0.55 | 0.63 | 0.30 | 0.68 | 1.10 | 0.62 |
| Jun 30, 2016 | 0.94 | 1.05 | 0.48 | 0.65 | 0.30 | 0.73 | 0.99 | 0.64 |
| Jun 30, 2015 | 1.03 | 1.02 | 0.56 | 0.67 | 0.21 | 0.78 | 0.94 | 0.64 |
| Jun 30, 2014 | 1.00 | 0.91 | 0.62 | 0.67 | 0.16 | 0.89 | 1.23 | 0.71 |
| Jun 30, 2013 | 1.04 | 0.93 | 0.62 | 0.62 | 0.15 | 0.86 | 1.25 | 0.69 |
| Jun 30, 2012 | 1.18 | 0.92 | 0.71 | 0.46 | 0.15 | 0.90 | 1.22 | 0.65 |
| Jun 30, 2011 | 1.13 | 0.86 | 0.70 | 0.90 | 0.13 | 0.92 | 1.23 | 0.95 |
| Jun 30, 2010 | 1.01 | 0.94 | 0.62 | 0.79 | 0.13 | 0.88 | 1.31 | 0.93 |
| Jun 30, 2009 | 1.05 | 1.10 | 0.49 | 0.73 | 0.13 | 0.86 | 1.29 | 0.94 |
| Jun 30, 2008 | 1.17 | 1.13 | 0.71 | 0.92 | 0.14 | 1.03 | 1.28 | 1.03 |
| Jun 30, 2007 | 1.27 | 1.13 | 0.75 | 0.97 | 0.13 | 1.02 | 1.45 | 0.99 |
| Jun 30, 2006 | 1.15 | 1.19 | 0.76 | 1.08 | 0.14 | 1.01 | 1.40 | 1.00 |
| Jun 30, 2005 | 1.19 | 0.91 | 0.72 | 1.09 | 0.14 | 0.86 | 1.34 | 0.92 |
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., total asset turnover, long-term trends, comparison to sector (capital goods)
| Parker-Hannifin Corp. | Capital Goods | |
|---|---|---|
| Jun 30, 2022 | 0.61 | 0.54 |
| Jun 30, 2021 | 0.71 | 0.50 |
| Jun 30, 2020 | 0.69 | 0.43 |
| Jun 30, 2019 | 0.81 | 0.54 |
| Jun 30, 2018 | 0.93 | 0.58 |
| Jun 30, 2017 | 0.78 | 0.54 |
| Jun 30, 2016 | 0.94 | 0.54 |
| Jun 30, 2015 | 1.03 | 0.46 |
| Jun 30, 2014 | 1.00 | 0.41 |
| Jun 30, 2013 | 1.04 | 0.39 |
| Jun 30, 2012 | 1.18 | 0.38 |
| Jun 30, 2011 | 1.13 | 0.36 |
| Jun 30, 2010 | 1.01 | 0.34 |
| Jun 30, 2009 | 1.05 | 0.33 |
| Jun 30, 2008 | 1.17 | 0.35 |
| Jun 30, 2007 | 1.27 | 0.34 |
| Jun 30, 2006 | 1.15 | 0.36 |
| Jun 30, 2005 | 1.19 | 0.33 |
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., total asset turnover, long-term trends, comparison to industry (industrials)
| Parker-Hannifin Corp. | Industrials | |
|---|---|---|
| Jun 30, 2022 | 0.61 | 0.66 |
| Jun 30, 2021 | 0.71 | 0.58 |
| Jun 30, 2020 | 0.69 | 0.50 |
| Jun 30, 2019 | 0.81 | 0.62 |
| Jun 30, 2018 | 0.93 | 0.67 |
| Jun 30, 2017 | 0.78 | 0.62 |
| Jun 30, 2016 | 0.94 | 0.61 |
| Jun 30, 2015 | 1.03 | 0.54 |
| Jun 30, 2014 | 1.00 | 0.49 |
| Jun 30, 2013 | 1.04 | 0.47 |
| Jun 30, 2012 | 1.18 | 0.46 |
| Jun 30, 2011 | 1.13 | 0.45 |
| Jun 30, 2010 | 1.01 | 0.41 |
| Jun 30, 2009 | 1.05 | 0.39 |
| Jun 30, 2008 | 1.17 | 0.43 |
| Jun 30, 2007 | 1.27 | 0.41 |
| Jun 30, 2006 | 1.15 | 0.43 |
| Jun 30, 2005 | 1.19 | 0.40 |
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).