Parker-Hannifin Corp. (NYSE:PH)

Total Asset Turnover

The reported total asset turnover experienced fluctuations over the period. It increased from 0.78 in 2017 to 0.93 in 2018, followed by a decline to 0.81 in 2019, and further dropped to 0.69 in 2020. It then showed a slight recovery to 0.71 in 2021 before declining to 0.61 in 2022. The adjusted total asset turnover follows the same pattern, indicating consistent reporting adjustments.

Current Ratio

Both reported and adjusted current ratios show an overall rising trend, indicating an improving liquidity position. The ratio increased from around 1.4–1.5 in 2017 to above 2.0 by 2022, peaking at 2.51 adjusted ratio in 2019. Despite a dip in 2020, the ratios improved in subsequent years, indicating strengthening current assets relative to current liabilities.

Debt to Equity

The debt to equity ratio fluctuated notably across the years. After declining from 1.12 in 2017 to 0.85 in 2018, it peaked again at 1.38 in 2020, decreased to 0.78 in 2021, then increased to 1.3 in 2022. The adjusted ratios exhibit similar volatility, suggesting varying leverage strategies or capital structure shifts within the period.

Debt to Capital

The debt to capital ratio follows a pattern similar to debt to equity, increasing from 0.53 in 2017 to 0.58 in 2020, decreasing to 0.44 in 2021, and rising again to 0.56 in 2022. This indicates fluctuating reliance on debt financing relative to total capital.

Financial Leverage

Reported financial leverage increased from 2.94 in 2017 to a high of 3.23 in 2020, before decreasing to 2.42 in 2021 and rising again to 2.93 in 2022. Adjusted leverage shows a similar trend with slightly lower values. This variability suggests periodic changes in asset financing mix, with increased leverage around 2020 and moderation thereafter.

Net Profit Margin

The reported net profit margin showed variability, starting at 8.18% in 2017, dipping to 7.42% in 2018, rising sharply to 10.56% in 2019, declining to 8.81% in 2020, peaking at 12.17% in 2021, and then falling to 8.29% in 2022. Adjusted net profit margin displays more pronounced fluctuations, particularly a significant peak at 18.74% in 2021, suggesting either one-off gains or adjusted earnings effects during that year.

Return on Equity (ROE)

Reported ROE showed a general upward trend from 18.69% in 2017 to a peak of 25.37% in 2019, followed by a decrease to 19.73% in 2020 and a relatively stable high of around 20.79% in 2021 before declining to 14.87% in 2022. Adjusted ROE shows greater volatility, with a peak of 30.3% in 2021 and a sharp drop to 10.85% in 2022, indicating significant fluctuations in profitability relative to equity when adjustments are taken into account.

Return on Assets (ROA)

Reported ROA improved steadily from 6.35% in 2017 to a high of 8.6% in 2019, then declined to 6.11% in 2020, slightly improved to 8.58% in 2021, and declined sharply to 5.07% in 2022. Adjusted ROA displays a more volatile pattern, dipping to 3.62% in 2020, peaking at 13.28% in 2021, and falling dramatically to 3.8% in 2022. This suggests significant variations in asset profitability, particularly in the adjusted figures.

The financial data over the six-year period reveals several notable trends in sales, asset levels, and efficiency ratios.

Net Sales

Net sales demonstrate a general upward trajectory, increasing from approximately $12.0 billion in mid-2017 to around $15.9 billion by mid-2022. There was a dip observed in 2020, with sales falling from $14.3 billion in 2019 to $13.7 billion, likely reflective of external economic challenges during that period. However, the company recovered in 2021, exceeding previous levels and continuing growth into 2022.

Total Assets

Total assets grew significantly over the period, rising from about $15.5 billion in mid-2017 to $25.9 billion by mid-2022. The asset base showed steady growth year-over-year, with particularly strong increases noted from 2020 onward. This substantial increase indicates ongoing investment or acquisition activity, expansion of capabilities, or accumulation of capital resources.

Reported Total Asset Turnover

The reported total asset turnover, which measures sales generated per dollar of assets, peaked in 2018 at 0.93, implying more efficient use of assets that year. From 2019 onward, the ratio steadily declined to 0.61 by mid-2022. This downward trend suggests that asset growth outpaced sales growth, leading to lower efficiency in asset utilization over time.

Adjusted Total Assets and Turnover

The adjusted total assets follow a similar pattern to reported total assets but consistently present slightly higher values. Correspondingly, the adjusted total asset turnover mimics the trend of reported turnover, showing a peak near 0.91 in 2018 and a decline to 0.61 by 2022. This confirms the observations on asset efficiency when accounting for adjustments, reinforcing the interpretation of a decreasing asset productivity ratio over the recent years.

In summary, while net sales have increased overall with some volatility, total assets have expanded more rapidly, leading to a reduction in asset turnover ratios. This indicates the company has become less efficient in generating sales from its asset base, potentially due to the acquisition of higher asset levels that have not yet fully translated into proportionate sales growth.

The analysis of the annual financial data reveals several notable trends in the liquidity position over the period from 2017 to 2022.

Current Assets

Current assets exhibit fluctuations with a strong upward trajectory in the final year. Initially increasing from approximately 4.78 billion US dollars in 2017 to a peak near 7.67 billion in 2019, there is a decline in 2020 to roughly 4.89 billion followed by moderate growth until 2021. A significant increase occurs in 2022, reaching about 12.05 billion US dollars, almost doubling the previous year, indicating a substantial enhancement in liquid resources or short-term assets.

Current Liabilities

Current liabilities show a more stable pattern with a slight downward trend from about 3.40 billion US dollars in 2017 to just over 3.09 billion in 2021. However, in 2022 there is a marked rise to approximately 5.86 billion US dollars, suggesting an increase in short-term financial obligations outstanding at year-end.

Reported Current Ratio

The reported current ratio, a key indicator of short-term financial health, shows improvement with some variability. It climbs from 1.41 in 2017 to a high of 2.43 in 2019, dips to 1.55 in 2020, and then steadily rises again to 2.06 by 2022. Despite the dip in 2020, the overall trend suggests strengthening liquidity relative to current liabilities over the period.

Adjusted Current Assets and Adjusted Current Ratio

Adjusted current assets, which may reflect a refinement of asset values for clearer assessment, follow a pattern similar to reported current assets but with slightly higher figures and a strong increase in 2022. The adjusted current ratio mirrors the reported ratio closely, confirming the liquidity improvement trend, with values ranging from 1.47 in 2017 to 2.06 in 2022, peaking at 2.51 in 2019.

Overall, the data indicates an increasingly strong liquidity position by the end of the period examined, despite short-term fluctuations around 2020. The sharp rise in both current assets and current liabilities in 2022 points to a significant change in the company's working capital structure, potentially resulting from operational expansion, increased short-term financing, or changes in asset management strategy.

The financial data indicates notable fluctuations in debt and equity metrics over the six-year period.

Total Debt

Total debt showed a decline from 2017 to 2018, dropping from approximately $5.87 billion to $4.96 billion. Subsequently, the debt increased significantly in 2019 and 2020, reaching over $8.46 billion in 2020. A decrease occurred in 2021 to about $6.58 billion, followed by a substantial rise to nearly $11.48 billion in 2022, marking the highest level in the period.

Shareholders’ Equity

Equity maintained a generally upward trend, rising steadily from around $5.26 billion in 2017 to about $8.85 billion in 2022. There was a marked increase between 2020 and 2021, with equity growing by over $2.2 billion, suggesting strengthening capital base during that interval.

Reported Debt to Equity Ratio

The reported debt to equity ratio reflects variation aligned with the changes in debt and equity levels. It decreased from 1.12 in 2017 to 0.85 in 2018, indicating lower leverage. The ratio climbed to a peak of 1.38 in 2020, concurrent with increased debt levels. A sharp decline to 0.78 in 2021 followed, reflecting the equity increase and debt reduction. However, in 2022, the ratio rose again to 1.3, indicating renewed leverage pressure.

Adjusted Total Debt and Equity

The adjusted total debt figures closely mirror the reported debt trends but at slightly higher values, starting at about $6.08 billion in 2017 and peaking at around $11.62 billion in 2022. Adjusted total equity also follows the upward trajectory seen in shareholders’ equity, increasing from approximately $5.66 billion in 2017 to $9.07 billion in 2022.

Adjusted Debt to Equity Ratio

This ratio is consistent with the reported debt to equity ratio pattern, reflecting the same leverage dynamics. The ratio declined from 1.07 in 2017 to 0.82 in 2018, increased to 1.3 in 2020, decreased sharply to 0.76 in 2021, and then rose again to 1.28 in 2022. These fluctuations indicate periodic shifts in the company’s capital structure leverage.

Overall, the data reveal cyclical leverage management, with the company increasing debt levels significantly in certain years, notably in 2019, 2020, and 2022, while equity has progressively strengthened. The debt to equity ratios suggest a strategic balance between debt usage and equity growth, with debt leverage peaking during periods of elevated borrowing and retreating when equity capital increased.

Total Debt

The total debt exhibited fluctuations over the examined periods. Initially, it decreased from approximately 5.87 billion in mid-2017 to around 4.96 billion in mid-2018. However, debt levels rose significantly in the subsequent years, peaking at about 8.46 billion in mid-2020. This was followed by a reduction in mid-2021 to roughly 6.58 billion, before increasing again sharply to approximately 11.48 billion by mid-2022.

Total Capital

Total capital increased consistently throughout the period, starting from about 11.13 billion in mid-2017 and reaching approximately 20.33 billion in mid-2022. The growth was steady year-over-year, indicating expansion in the company’s overall financing base.

Reported Debt to Capital Ratio

The reported debt to capital ratio reflected the changes observed in debt relative to capital. It started at 0.53 in mid-2017, dropped to 0.46 in mid-2018, then increased to a high of 0.58 in mid-2020. The ratio dropped again in mid-2021 to 0.44, before rising to 0.56 in mid-2022. This suggests periods of varying reliance on debt financing in relation to the capital structure, with notable peaks in 2019-2020 and a significant increase again in 2022.

Adjusted Total Debt

Adjusted total debt followed trends closely aligned with reported total debt, starting at about 6.08 billion in mid-2017, decreasing slightly in 2018, rising to a peak of approximately 8.60 billion in mid-2020, then falling to around 6.72 billion in mid-2021. It increased markedly to approximately 11.62 billion in mid-2022, consistent with the reported debt pattern.

Adjusted Total Capital

Adjusted total capital showed similar steady growth as total capital, beginning at approximately 11.75 billion in mid-2017 and rising consistently to about 20.68 billion in mid-2022. This steady increase supports the view of expanding financial resources over the period.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio mirrored the reported ratio closely, starting at 0.52 in mid-2017, dropping to 0.45 in mid-2018, rising to 0.57 in mid-2020, falling to 0.43 in mid-2021, and increasing to 0.56 in mid-2022. This confirms the pattern of moderate to high leverage fluctuations throughout the timeline, with lower leverage in 2021 and elevated leverage in 2020 and 2022.

Total Assets

Total assets increased steadily over the six-year period, rising from approximately $15.5 billion in 2017 to about $25.9 billion in 2022. The most significant growth occurred between 2021 and 2022, with an increase of nearly $5.6 billion, indicating considerable expansion or asset acquisition during the most recent year.

Shareholders’ Equity

Shareholders' equity demonstrated a generally upward trend from $5.26 billion in 2017 to $8.85 billion in 2022. The equity base grew most sharply between 2020 and 2021, increasing by more than $2.2 billion. This growth suggests improved retained earnings, capital injections, or other equity-increasing activities during this period.

Reported Financial Leverage

The reported financial leverage ratio fluctuated over the years, ranging from a low of 2.42 in 2021 to a high of 3.23 in 2020. After peaking in 2020, the ratio declined significantly in 2021, indicating a reduction in the degree of leverage, but then increased again in 2022. These variations suggest changes in the company’s debt levels relative to equity, reflecting shifts in capital structure management strategies.

Adjusted Total Assets

Adjusted total assets followed a similar upward trajectory as reported total assets, rising from approximately $15.9 billion in 2017 to about $25.8 billion in 2022. The pattern mirrors overall asset growth, with continuous increases year over year and notable acceleration in the latest year.

Adjusted Total Equity

Adjusted total equity increased from $5.66 billion in 2017 to over $9.06 billion in 2022. The growth was generally consistent except for relatively flat movement between 2018 and 2019. The most substantial rise occurred from 2020 to 2021, consistent with the pattern observed in shareholders’ equity, indicating stronger equity levels after adjustments.

Adjusted Financial Leverage

The adjusted financial leverage ratio varied similarly to the reported leverage, starting at 2.8 in 2017 and ending at 2.85 in 2022. The ratio peaked at 3.0 in 2020, followed by a notable decrease to 2.28 in 2021 before increasing again. This variation aligns with the changes in the reported leverage ratio, highlighting adjustments in financial structure that impacted leverage calculations.

The financial data reveals several distinct trends and fluctuations over the six-year period ending June 30, 2022. Net sales generally increased, indicating growth in revenue, with a few variations in the rate of increase. Net income attributable to common shareholders exhibits volatility but generally remains at a high level, reflecting fluctuating profitability.

Net Sales

There is a steady increase in net sales from approximately 12.03 billion US dollars in 2017 to 15.86 billion US dollars in 2022. The growth is consistent except for a slight decline in 2020, likely due to external disruptions, before recovering in subsequent years.

Net Income Attributable to Common Shareholders

Net income fluctuated throughout the period. It increased from 983 million US dollars in 2017 to a peak of around 1.74 billion US dollars in 2021, followed by a decline to approximately 1.32 billion US dollars in 2022. This variability suggests periods of both strong performance and challenges impacting profitability.

Reported Net Profit Margin

The reported net profit margin shows variability and does not strictly correlate with net sales growth. It dropped from 8.18% in 2017 to 7.42% in 2018, surged to 10.56% in 2019, then declined to 8.81% in 2020. The margin peaked at 12.17% in 2021, indicating exceptional profitability that year, but decreased significantly to 8.29% in 2022. This indicates fluctuating efficiency in converting sales to profit over the years.

Adjusted Net Income

Adjusted net income reflects considerable volatility, starting at around 1.33 billion US dollars in 2017, decreasing steadily to 719 million US dollars in 2020, then experiencing a significant spike to approximately 2.69 billion US dollars in 2021, before falling sharply to 983 million US dollars in 2022. This pattern indicates the presence of substantial non-recurring items or adjustments affecting reported profitability.

Adjusted Net Profit Margin

The adjusted net profit margin mirrors the adjusted net income trend, declining from 11.02% in 2017 to 5.25% in 2020, surging to a peak of 18.74% in 2021, and then decreasing to 6.20% in 2022. This dramatic fluctuation underscores extraordinary events or adjustments impacting profitability margins and suggests a need for further investigation into the factors driving these changes.

Overall, the data suggests a business experiencing growth in sales but facing inconsistent profitability, influenced by significant adjustments and possibly external or internal operational factors. The exceptionally high margin and income figures in 2021 stand out as an anomaly compared to other years, warranting a closer review of one-time events or accounting changes during that period.

The financial data reveals several notable trends over the six-year period ending June 30, 2022. Net income attributable to common shareholders showed an overall upward trajectory from 2017 through 2021, rising from approximately $983 million to $1.75 billion. However, there was a decline in net income in 2022, falling to about $1.32 billion. Shareholders’ equity exhibited consistent growth year over year, increasing from roughly $5.26 billion in 2017 to $8.85 billion in 2022, indicating an expanding equity base.

When examining the reported return on equity (ROE), the percentage fluctuated throughout the period. ROE started at 18.69% in 2017, reached a peak of 25.37% in 2019, then generally declined to 14.87% by 2022. This suggests that profitability relative to equity shareholders weakened in the latter years despite the growth in absolute equity and fluctuating net income.

Adjusted figures provide additional insight, showing that adjusted net income declined significantly in 2020 to around $719 million, followed by a rebound to nearly $2.69 billion in 2021 before dropping again to about $983 million in 2022. Adjusted total equity also consistently increased, from approximately $5.66 billion in 2017 to over $9 billion in 2022, mirroring the trend in reported shareholders’ equity.

The adjusted ROE shows a more volatile pattern than the reported ROE, peaking at 30.3% in 2021 but dropping sharply both before and after that year, reaching about 10.85% in 2022. This volatility in adjusted ROE reflects fluctuating profitability efforts relative to the adjusted equity base and indicates varying operational performance or extraordinary items impacting adjusted earnings.

Net Income Trend

Increased steadily from 2017 to 2021; declined in 2022.

Shareholders’ Equity

Consistently grew over the entire period, suggesting capital accumulation.

Reported ROE

Peaked in 2019, then declined through 2022, indicating reduced return efficiency on equity.

Adjusted Net Income

More volatile than net income, with a notable drop in 2020, rebound in 2021, and decrease in 2022.

Adjusted Total Equity

Increased steadily, closely tracking reported equity growth patterns.

Adjusted ROE

Displayed high volatility, peaking in 2021 but declining sharply thereafter, reflecting fluctuating profitability on an adjusted basis.

The financial data exhibits several notable trends over the six-year period from 2017 to 2022.

Net Income Attributable to Common Shareholders

The net income shows a generally increasing trend from 983 million USD in 2017 to a peak of approximately 1.75 billion USD in 2021, in spite of a dip in 2020 to about 1.21 billion USD. However, the figure declines again in 2022 to roughly 1.32 billion USD, indicating volatility in profitability in recent years.

Total Assets

The total assets steadily increased throughout the entire period, from about 15.5 billion USD in 2017 to approximately 25.9 billion USD by 2022. This consistent growth suggests ongoing expansion or asset accumulation in the company’s operations or investments.

Reported Return on Assets (ROA)

The reported ROA shows fluctuations over the years. It starts at 6.35% in 2017, improves to 8.6% by 2019, then declines to 6.11% in 2020, recovers to 8.58% in 2021, and finally drops to 5.07% in 2022. The peak years of 2019 and 2021 indicate higher efficiency in asset utilization, while the decreases suggest periods of lower profitability relative to assets.

Adjusted Net Income

The adjusted net income presents a less consistent trend compared to the reported net income. After peaking initially at about 1.33 billion USD in 2017, it declines through 2020 to a low of around 719 million USD. In 2021, it sharply increases to approximately 2.69 billion USD, followed by a significant drop to roughly 983 million USD in 2022. These fluctuations could reflect extraordinary items or adjustments affecting the net income calculations.

Adjusted Total Assets

The adjusted total assets follow a growth pattern similar to reported total assets, rising steadily from about 15.9 billion USD in 2017 to nearly 25.8 billion USD in 2022. This consistency further supports the observation of asset growth over the period.

Adjusted Return on Assets (ROA)

The adjusted ROA begins at a high of 8.35% in 2017 but trends downward over the next three years, reaching a low of 3.62% in 2020. It then experiences a sharp increase to 13.28% in 2021, significantly higher than previous years, before falling again to 3.8% in 2022. This high volatility may indicate the impact of adjustments on profitability metrics and could suggest irregularities or one-time factors influencing performance in 2021.