Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Parker-Hannifin Corp., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Parker-Hannifin Corp. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Parker-Hannifin Corp. quick ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Parker-Hannifin Corp. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Current Ratio
Parker-Hannifin Corp., current ratio calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 12,046,644) | 5,616,750) | 4,885,204) | 7,673,086) | 5,085,238) | 4,779,718) | |
| Current liabilities | 5,859,318) | 3,096,503) | 3,148,373) | 3,151,773) | 3,197,483) | 3,395,860) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.06 | 1.81 | 1.55 | 2.43 | 1.59 | 1.41 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Boeing Co. | 1.22 | 1.33 | 1.39 | 1.05 | — | — | |
| Caterpillar Inc. | 1.39 | 1.46 | 1.53 | 1.47 | — | — | |
| Eaton Corp. plc | 1.38 | 1.04 | 1.56 | 1.70 | — | — | |
| GE Aerospace | 1.16 | 1.28 | 1.58 | 1.16 | — | — | |
| Honeywell International Inc. | 1.25 | 1.30 | 1.47 | 1.34 | — | — | |
| Lockheed Martin Corp. | 1.32 | 1.42 | 1.39 | 1.22 | — | — | |
| RTX Corp. | 1.09 | 1.19 | 1.21 | 1.08 | — | — | |
| Current Ratio, Sector | |||||||
| Capital Goods | 1.22 | 1.31 | 1.43 | 1.17 | — | — | |
| Current Ratio, Industry | |||||||
| Industrials | 1.21 | 1.30 | 1.42 | 1.19 | — | — | |
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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,046,644 ÷ 5,859,318 = 2.06
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Parker-Hannifin Corp. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Parker-Hannifin Corp., quick ratio calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 535,799) | 733,117) | 685,514) | 3,219,767) | 822,137) | 884,886) | |
| Marketable securities and other investments | 27,862) | 39,116) | 70,805) | 150,931) | 32,995) | 39,318) | |
| Trade accounts receivable, net | 2,341,504) | 2,183,594) | 1,854,398) | 2,131,054) | 2,145,517) | 1,930,751) | |
| Non-trade and notes receivable | 543,757) | 326,315) | 244,870) | 310,708) | 328,399) | 254,987) | |
| Total quick assets | 3,448,922) | 3,282,142) | 2,855,587) | 5,812,460) | 3,329,048) | 3,109,942) | |
| Current liabilities | 5,859,318) | 3,096,503) | 3,148,373) | 3,151,773) | 3,197,483) | 3,395,860) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.59 | 1.06 | 0.91 | 1.84 | 1.04 | 0.92 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Boeing Co. | 0.32 | 0.34 | 0.41 | 0.23 | — | — | |
| Caterpillar Inc. | 0.79 | 0.89 | 1.02 | 0.98 | — | — | |
| Eaton Corp. plc | 0.73 | 0.54 | 0.68 | 0.78 | — | — | |
| GE Aerospace | 0.81 | 0.93 | 1.27 | 0.86 | — | — | |
| Honeywell International Inc. | 0.88 | 0.94 | 1.15 | 0.99 | — | — | |
| Lockheed Martin Corp. | 1.09 | 1.15 | 1.05 | 0.93 | — | — | |
| RTX Corp. | 0.69 | 0.81 | 0.78 | 0.73 | — | — | |
| Quick Ratio, Sector | |||||||
| Capital Goods | 0.64 | 0.71 | 0.83 | 0.64 | — | — | |
| Quick Ratio, Industry | |||||||
| Industrials | 0.70 | 0.78 | 0.87 | 0.71 | — | — | |
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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,448,922 ÷ 5,859,318 = 0.59
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Parker-Hannifin Corp. quick ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Cash Ratio
Parker-Hannifin Corp., cash ratio calculation, comparison to benchmarks
| Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 535,799) | 733,117) | 685,514) | 3,219,767) | 822,137) | 884,886) | |
| Marketable securities and other investments | 27,862) | 39,116) | 70,805) | 150,931) | 32,995) | 39,318) | |
| Total cash assets | 563,661) | 772,233) | 756,319) | 3,370,698) | 855,132) | 924,204) | |
| Current liabilities | 5,859,318) | 3,096,503) | 3,148,373) | 3,151,773) | 3,197,483) | 3,395,860) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.10 | 0.25 | 0.24 | 1.07 | 0.27 | 0.27 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Boeing Co. | 0.19 | 0.20 | 0.29 | 0.10 | — | — | |
| Caterpillar Inc. | 0.22 | 0.31 | 0.36 | 0.31 | — | — | |
| Eaton Corp. plc | 0.09 | 0.08 | 0.19 | 0.12 | — | — | |
| GE Aerospace | 0.44 | 0.54 | 0.78 | 0.60 | — | — | |
| Honeywell International Inc. | 0.51 | 0.59 | 0.79 | 0.58 | — | — | |
| Lockheed Martin Corp. | 0.16 | 0.26 | 0.23 | 0.11 | — | — | |
| RTX Corp. | 0.16 | 0.22 | 0.25 | 0.21 | — | — | |
| Cash Ratio, Sector | |||||||
| Capital Goods | 0.26 | 0.32 | 0.44 | 0.31 | — | — | |
| Cash Ratio, Industry | |||||||
| Industrials | 0.29 | 0.35 | 0.45 | 0.34 | — | — | |
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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 563,661 ÷ 5,859,318 = 0.10
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Parker-Hannifin Corp. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |