Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Parker-Hannifin Corp., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Parker-Hannifin Corp. debt to equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Parker-Hannifin Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Parker-Hannifin Corp. debt to capital ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Parker-Hannifin Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Parker-Hannifin Corp. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Parker-Hannifin Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Parker-Hannifin Corp. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Parker-Hannifin Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Parker-Hannifin Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Equity
Parker-Hannifin Corp., debt to equity 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) | |||||||
| Notes payable and long-term debt payable within one year | 1,724,310) | 2,824) | 809,529) | 587,014) | 638,466) | 1,008,465) | |
| Long-term debt, excluding payable within one year | 9,755,825) | 6,582,053) | 7,652,256) | 6,520,831) | 4,318,559) | 4,861,895) | |
| Total debt | 11,480,135) | 6,584,877) | 8,461,785) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.30 | 0.78 | 1.38 | 1.19 | 0.85 | 1.12 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 2.33 | 2.29 | 2.42 | 2.58 | — | — | |
| Eaton Corp. plc | 0.51 | 0.52 | 0.54 | 0.52 | — | — | |
| GE Aerospace | 0.89 | 0.87 | 2.11 | 3.21 | — | — | |
| Honeywell International Inc. | 1.17 | 1.06 | 1.28 | 0.87 | — | — | |
| Lockheed Martin Corp. | 1.68 | 1.07 | 2.02 | 4.05 | — | — | |
| RTX Corp. | 0.44 | 0.43 | 0.44 | 1.04 | — | — | |
| Debt to Equity, Sector | |||||||
| Capital Goods | 1.33 | 1.26 | 1.75 | 2.08 | — | — | |
| Debt to Equity, Industry | |||||||
| Industrials | 1.32 | 1.25 | 1.73 | 1.86 | — | — | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 11,480,135 ÷ 8,848,011 = 1.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Parker-Hannifin Corp. debt to equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Equity (including Operating Lease Liability)
Parker-Hannifin Corp., debt to equity (including operating lease liability) 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) | |||||||
| Notes payable and long-term debt payable within one year | 1,724,310) | 2,824) | 809,529) | 587,014) | 638,466) | 1,008,465) | |
| Long-term debt, excluding payable within one year | 9,755,825) | 6,582,053) | 7,652,256) | 6,520,831) | 4,318,559) | 4,861,895) | |
| Total debt | 11,480,135) | 6,584,877) | 8,461,785) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Current operating lease liabilities (included within Other accrued liabilities) | 36,023) | 40,193) | 43,327) | —) | —) | —) | |
| Long-term operating lease liabilities (included within Other liabilities) | 100,337) | 93,904) | 96,446) | —) | —) | —) | |
| Total debt (including operating lease liability) | 11,616,495) | 6,718,974) | 8,601,558) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.31 | 0.80 | 1.41 | 1.19 | 0.85 | 1.12 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 2.37 | 2.33 | 2.46 | 2.62 | — | — | |
| Eaton Corp. plc | 0.54 | 0.55 | 0.57 | 0.55 | — | — | |
| GE Aerospace | 0.96 | 0.94 | 2.20 | 3.32 | — | — | |
| Honeywell International Inc. | 1.23 | 1.11 | 1.32 | 0.90 | — | — | |
| Lockheed Martin Corp. | 1.81 | 1.19 | 2.21 | 4.40 | — | — | |
| RTX Corp. | 0.47 | 0.46 | 0.47 | 1.11 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Capital Goods | 1.39 | 1.32 | 1.81 | 2.17 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Industrials | 1.47 | 1.39 | 1.89 | 1.96 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 11,616,495 ÷ 8,848,011 = 1.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Parker-Hannifin Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Capital
Parker-Hannifin Corp., debt to capital 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) | |||||||
| Notes payable and long-term debt payable within one year | 1,724,310) | 2,824) | 809,529) | 587,014) | 638,466) | 1,008,465) | |
| Long-term debt, excluding payable within one year | 9,755,825) | 6,582,053) | 7,652,256) | 6,520,831) | 4,318,559) | 4,861,895) | |
| Total debt | 11,480,135) | 6,584,877) | 8,461,785) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Total capital | 20,328,146) | 14,983,184) | 14,575,768) | 13,069,814) | 10,816,891) | 11,132,009) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.56 | 0.44 | 0.58 | 0.54 | 0.46 | 0.53 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Boeing Co. | 1.39 | 1.35 | 1.40 | 1.46 | — | — | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | 0.72 | — | — | |
| Eaton Corp. plc | 0.34 | 0.34 | 0.35 | 0.34 | — | — | |
| GE Aerospace | 0.47 | 0.47 | 0.68 | 0.76 | — | — | |
| Honeywell International Inc. | 0.54 | 0.51 | 0.56 | 0.46 | — | — | |
| Lockheed Martin Corp. | 0.63 | 0.52 | 0.67 | 0.80 | — | — | |
| RTX Corp. | 0.31 | 0.30 | 0.31 | 0.51 | — | — | |
| Debt to Capital, Sector | |||||||
| Capital Goods | 0.57 | 0.56 | 0.64 | 0.68 | — | — | |
| Debt to Capital, Industry | |||||||
| Industrials | 0.57 | 0.56 | 0.63 | 0.65 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 11,480,135 ÷ 20,328,146 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Parker-Hannifin Corp. debt to capital ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Capital (including Operating Lease Liability)
Parker-Hannifin Corp., debt to capital (including operating lease liability) 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) | |||||||
| Notes payable and long-term debt payable within one year | 1,724,310) | 2,824) | 809,529) | 587,014) | 638,466) | 1,008,465) | |
| Long-term debt, excluding payable within one year | 9,755,825) | 6,582,053) | 7,652,256) | 6,520,831) | 4,318,559) | 4,861,895) | |
| Total debt | 11,480,135) | 6,584,877) | 8,461,785) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Current operating lease liabilities (included within Other accrued liabilities) | 36,023) | 40,193) | 43,327) | —) | —) | —) | |
| Long-term operating lease liabilities (included within Other liabilities) | 100,337) | 93,904) | 96,446) | —) | —) | —) | |
| Total debt (including operating lease liability) | 11,616,495) | 6,718,974) | 8,601,558) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Total capital (including operating lease liability) | 20,464,506) | 15,117,281) | 14,715,541) | 13,069,814) | 10,816,891) | 11,132,009) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.57 | 0.44 | 0.58 | 0.54 | 0.46 | 0.53 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Boeing Co. | 1.37 | 1.34 | 1.39 | 1.43 | — | — | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | 0.72 | — | — | |
| Eaton Corp. plc | 0.35 | 0.36 | 0.36 | 0.35 | — | — | |
| GE Aerospace | 0.49 | 0.49 | 0.69 | 0.77 | — | — | |
| Honeywell International Inc. | 0.55 | 0.53 | 0.57 | 0.47 | — | — | |
| Lockheed Martin Corp. | 0.64 | 0.54 | 0.69 | 0.81 | — | — | |
| RTX Corp. | 0.32 | 0.31 | 0.32 | 0.53 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Capital Goods | 0.58 | 0.57 | 0.64 | 0.68 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Industrials | 0.60 | 0.58 | 0.65 | 0.66 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,616,495 ÷ 20,464,506 = 0.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Parker-Hannifin Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Assets
Parker-Hannifin Corp., debt to assets 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) | |||||||
| Notes payable and long-term debt payable within one year | 1,724,310) | 2,824) | 809,529) | 587,014) | 638,466) | 1,008,465) | |
| Long-term debt, excluding payable within one year | 9,755,825) | 6,582,053) | 7,652,256) | 6,520,831) | 4,318,559) | 4,861,895) | |
| Total debt | 11,480,135) | 6,584,877) | 8,461,785) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Total assets | 25,943,943) | 20,341,200) | 19,738,189) | 17,576,690) | 15,320,087) | 15,489,904) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.44 | 0.32 | 0.43 | 0.40 | 0.32 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Boeing Co. | 0.42 | 0.42 | 0.42 | 0.20 | — | — | |
| Caterpillar Inc. | 0.45 | 0.46 | 0.47 | 0.48 | — | — | |
| Eaton Corp. plc | 0.25 | 0.25 | 0.25 | 0.25 | — | — | |
| GE Aerospace | 0.17 | 0.18 | 0.30 | 0.34 | — | — | |
| Honeywell International Inc. | 0.31 | 0.30 | 0.35 | 0.27 | — | — | |
| Lockheed Martin Corp. | 0.29 | 0.23 | 0.24 | 0.27 | — | — | |
| RTX Corp. | 0.20 | 0.20 | 0.20 | 0.31 | — | — | |
| Debt to Assets, Sector | |||||||
| Capital Goods | 0.28 | 0.28 | 0.32 | 0.31 | — | — | |
| Debt to Assets, Industry | |||||||
| Industrials | 0.29 | 0.29 | 0.32 | 0.32 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 11,480,135 ÷ 25,943,943 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Parker-Hannifin Corp. debt to assets ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Parker-Hannifin Corp., debt to assets (including operating lease liability) 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) | |||||||
| Notes payable and long-term debt payable within one year | 1,724,310) | 2,824) | 809,529) | 587,014) | 638,466) | 1,008,465) | |
| Long-term debt, excluding payable within one year | 9,755,825) | 6,582,053) | 7,652,256) | 6,520,831) | 4,318,559) | 4,861,895) | |
| Total debt | 11,480,135) | 6,584,877) | 8,461,785) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Current operating lease liabilities (included within Other accrued liabilities) | 36,023) | 40,193) | 43,327) | —) | —) | —) | |
| Long-term operating lease liabilities (included within Other liabilities) | 100,337) | 93,904) | 96,446) | —) | —) | —) | |
| Total debt (including operating lease liability) | 11,616,495) | 6,718,974) | 8,601,558) | 7,107,845) | 4,957,025) | 5,870,360) | |
| Total assets | 25,943,943) | 20,341,200) | 19,738,189) | 17,576,690) | 15,320,087) | 15,489,904) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.45 | 0.33 | 0.44 | 0.40 | 0.32 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Boeing Co. | 0.43 | 0.43 | 0.43 | 0.21 | — | — | |
| Caterpillar Inc. | 0.46 | 0.46 | 0.48 | 0.49 | — | — | |
| Eaton Corp. plc | 0.26 | 0.27 | 0.27 | 0.27 | — | — | |
| GE Aerospace | 0.19 | 0.19 | 0.31 | 0.35 | — | — | |
| Honeywell International Inc. | 0.33 | 0.32 | 0.36 | 0.28 | — | — | |
| Lockheed Martin Corp. | 0.32 | 0.26 | 0.26 | 0.29 | — | — | |
| RTX Corp. | 0.21 | 0.21 | 0.21 | 0.33 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Capital Goods | 0.30 | 0.29 | 0.33 | 0.33 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Industrials | 0.33 | 0.32 | 0.35 | 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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,616,495 ÷ 25,943,943 = 0.45
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Parker-Hannifin Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Financial Leverage
Parker-Hannifin Corp., financial leverage 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) | |||||||
| Total assets | 25,943,943) | 20,341,200) | 19,738,189) | 17,576,690) | 15,320,087) | 15,489,904) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.93 | 2.42 | 3.23 | 2.95 | 2.61 | 2.94 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 5.16 | 5.02 | 5.11 | 5.38 | — | — | |
| Eaton Corp. plc | 2.06 | 2.07 | 2.13 | 2.04 | — | — | |
| GE Aerospace | 5.16 | 4.93 | 7.13 | 9.40 | — | — | |
| Honeywell International Inc. | 3.73 | 3.47 | 3.68 | 3.17 | — | — | |
| Lockheed Martin Corp. | 5.71 | 4.64 | 8.43 | 15.20 | — | — | |
| RTX Corp. | 2.19 | 2.21 | 2.25 | 3.34 | — | — | |
| Financial Leverage, Sector | |||||||
| Capital Goods | 4.71 | 4.55 | 5.54 | 6.65 | — | — | |
| Financial Leverage, Industry | |||||||
| Industrials | 4.49 | 4.33 | 5.35 | 5.76 | — | — | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 25,943,943 ÷ 8,848,011 = 2.93
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Parker-Hannifin Corp. financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |
Interest Coverage
Parker-Hannifin Corp., interest coverage 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) | |||||||
| Net income attributable to common shareholders | 1,315,605) | 1,746,100) | 1,206,341) | 1,512,364) | 1,060,801) | 983,412) | |
| Add: Net income attributable to noncontrolling interest | 581) | 761) | 362) | 567) | 514) | 432) | |
| Add: Income tax expense | 298,040) | 500,096) | 305,924) | 420,494) | 640,962) | 344,797) | |
| Add: Interest expense | 255,252) | 250,036) | 308,161) | 190,138) | 213,873) | 162,436) | |
| Earnings before interest and tax (EBIT) | 1,869,478) | 2,496,993) | 1,820,788) | 2,123,563) | 1,916,150) | 1,491,077) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 7.32 | 9.99 | 5.91 | 11.17 | 8.96 | 9.18 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Boeing Co. | -0.98 | -0.88 | -5.71 | -2.19 | — | — | |
| Caterpillar Inc. | 20.80 | 17.88 | 8.80 | 19.62 | — | — | |
| Eaton Corp. plc | 21.22 | 21.11 | 12.72 | 11.98 | — | — | |
| GE Aerospace | 1.88 | -0.96 | 2.59 | 1.27 | — | — | |
| Honeywell International Inc. | 16.41 | 22.09 | 17.75 | 22.17 | — | — | |
| Lockheed Martin Corp. | 11.72 | 14.27 | 14.93 | 12.09 | — | — | |
| RTX Corp. | 5.64 | 4.71 | -0.65 | 5.65 | — | — | |
| Interest Coverage, Sector | |||||||
| Capital Goods | 4.84 | 3.98 | 1.99 | 4.85 | — | — | |
| Interest Coverage, Industry | |||||||
| Industrials | 5.53 | 6.00 | 2.04 | 4.37 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 1,869,478 ÷ 255,252 = 7.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Parker-Hannifin Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Fixed Charge Coverage
Parker-Hannifin Corp., fixed charge coverage 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) | |||||||
| Net income attributable to common shareholders | 1,315,605) | 1,746,100) | 1,206,341) | 1,512,364) | 1,060,801) | 983,412) | |
| Add: Net income attributable to noncontrolling interest | 581) | 761) | 362) | 567) | 514) | 432) | |
| Add: Income tax expense | 298,040) | 500,096) | 305,924) | 420,494) | 640,962) | 344,797) | |
| Add: Interest expense | 255,252) | 250,036) | 308,161) | 190,138) | 213,873) | 162,436) | |
| Earnings before interest and tax (EBIT) | 1,869,478) | 2,496,993) | 1,820,788) | 2,123,563) | 1,916,150) | 1,491,077) | |
| Add: Operating lease expense | 46,026) | 48,171) | 50,267) | 126,752) | 126,940) | 118,723) | |
| Earnings before fixed charges and tax | 1,915,504) | 2,545,164) | 1,871,055) | 2,250,315) | 2,043,090) | 1,609,800) | |
| Interest expense | 255,252) | 250,036) | 308,161) | 190,138) | 213,873) | 162,436) | |
| Operating lease expense | 46,026) | 48,171) | 50,267) | 126,752) | 126,940) | 118,723) | |
| Fixed charges | 301,278) | 298,207) | 358,428) | 316,890) | 340,813) | 281,159) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 6.36 | 8.53 | 5.22 | 7.10 | 5.99 | 5.73 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Boeing Co. | -0.70 | -0.64 | -4.75 | -1.19 | — | — | |
| Caterpillar Inc. | 14.92 | 12.73 | 6.58 | 13.01 | — | — | |
| Eaton Corp. plc | 10.01 | 10.40 | 6.24 | 7.45 | — | — | |
| GE Aerospace | 1.35 | -0.22 | 1.93 | 1.09 | — | — | |
| Honeywell International Inc. | 11.00 | 13.67 | 11.49 | 14.06 | — | — | |
| Lockheed Martin Corp. | 8.44 | 9.95 | 11.12 | 9.12 | — | — | |
| RTX Corp. | 4.40 | 3.66 | -0.22 | 4.31 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Capital Goods | 3.61 | 3.06 | 1.66 | 3.63 | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Industrials | 3.58 | 3.93 | 1.59 | 2.96 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,915,504 ÷ 301,278 = 6.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Parker-Hannifin Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |