Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Parker-Hannifin Corp., long-term (investment) activity 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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Parker-Hannifin Corp. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Parker-Hannifin Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Parker-Hannifin Corp. total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Parker-Hannifin Corp. equity turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Net Fixed Asset Turnover
Parker-Hannifin Corp., net fixed asset turnover 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 sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Property, plant and equipment, net | 2,122,758) | 2,266,476) | 2,292,735) | 1,768,287) | 1,856,237) | 1,937,292) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 7.47 | 6.33 | 5.97 | 8.10 | 7.71 | 6.21 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Boeing Co. | 6.31 | 5.70 | 4.92 | 6.12 | — | — | |
| Caterpillar Inc. | 4.70 | 3.99 | 3.15 | 3.93 | — | — | |
| Eaton Corp. plc | 6.59 | 6.41 | 6.02 | 6.12 | — | — | |
| GE Aerospace | 5.96 | 5.47 | 1.75 | 2.02 | — | — | |
| Honeywell International Inc. | 6.48 | 6.18 | 5.86 | 6.89 | — | — | |
| Lockheed Martin Corp. | 8.27 | 8.83 | 9.07 | 9.07 | — | — | |
| RTX Corp. | 4.42 | 4.30 | 3.78 | 6.04 | — | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Capital Goods | 5.79 | 5.46 | 3.55 | 4.23 | — | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Industrials | 3.22 | 3.04 | 2.41 | 2.76 | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 15,861,608 ÷ 2,122,758 = 7.47
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Parker-Hannifin Corp. net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Parker-Hannifin Corp., net fixed asset turnover (including operating lease, right-of-use asset) 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 sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Property, plant and equipment, net | 2,122,758) | 2,266,476) | 2,292,735) | 1,768,287) | 1,856,237) | 1,937,292) | |
| Operating lease right-of-use assets (included within Investments and other assets) | 133,412) | 131,880) | 138,601) | —) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 2,256,170) | 2,398,356) | 2,431,336) | 1,768,287) | 1,856,237) | 1,937,292) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.03 | 5.98 | 5.63 | 8.10 | 7.71 | 6.21 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Boeing Co. | 5.55 | 5.04 | 4.45 | 5.59 | — | — | |
| Caterpillar Inc. | 4.49 | 3.79 | 3.00 | 3.75 | — | — | |
| Eaton Corp. plc | 5.58 | 5.60 | 5.26 | 5.44 | — | — | |
| GE Aerospace | 5.08 | 4.55 | 1.63 | 1.89 | — | — | |
| Honeywell International Inc. | 5.58 | 5.28 | 5.15 | 6.12 | — | — | |
| Lockheed Martin Corp. | 7.27 | 7.54 | 7.96 | 7.88 | — | — | |
| RTX Corp. | 3.95 | 3.80 | 3.36 | 5.02 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Capital Goods | 5.13 | 4.80 | 3.25 | 3.86 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Industrials | 2.77 | 2.62 | 2.13 | 2.57 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 15,861,608 ÷ 2,256,170 = 7.03
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Parker-Hannifin Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Parker-Hannifin Corp., total asset turnover 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 sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Total assets | 25,943,943) | 20,341,200) | 19,738,189) | 17,576,690) | 15,320,087) | 15,489,904) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.61 | 0.71 | 0.69 | 0.81 | 0.93 | 0.78 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Boeing Co. | 0.49 | 0.45 | 0.38 | 0.57 | — | — | |
| Caterpillar Inc. | 0.69 | 0.58 | 0.50 | 0.65 | — | — | |
| Eaton Corp. plc | 0.59 | 0.58 | 0.56 | 0.65 | — | — | |
| GE Aerospace | 0.39 | 0.36 | 0.29 | 0.33 | — | — | |
| Honeywell International Inc. | 0.57 | 0.53 | 0.51 | 0.63 | — | — | |
| Lockheed Martin Corp. | 1.25 | 1.32 | 1.29 | 1.26 | — | — | |
| RTX Corp. | 0.42 | 0.40 | 0.35 | 0.55 | — | — | |
| Total Asset Turnover, Sector | |||||||
| Capital Goods | 0.54 | 0.50 | 0.43 | 0.54 | — | — | |
| Total Asset Turnover, Industry | |||||||
| Industrials | 0.66 | 0.60 | 0.51 | 0.61 | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 15,861,608 ÷ 25,943,943 = 0.61
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Parker-Hannifin Corp. total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Equity Turnover
Parker-Hannifin Corp., equity turnover 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 sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 1.79 | 1.71 | 2.24 | 2.40 | 2.44 | 2.29 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 3.57 | 2.92 | 2.55 | 3.48 | — | — | |
| Eaton Corp. plc | 1.22 | 1.20 | 1.20 | 1.33 | — | — | |
| GE Aerospace | 2.02 | 1.76 | 2.05 | 3.09 | — | — | |
| Honeywell International Inc. | 2.12 | 1.85 | 1.86 | 1.98 | — | — | |
| Lockheed Martin Corp. | 7.12 | 6.12 | 10.87 | 19.13 | — | — | |
| RTX Corp. | 0.92 | 0.88 | 0.78 | 1.84 | — | — | |
| Equity Turnover, Sector | |||||||
| Capital Goods | 2.54 | 2.28 | 2.39 | 3.60 | — | — | |
| Equity Turnover, Industry | |||||||
| Industrials | 2.94 | 2.58 | 2.75 | 3.53 | — | — | |
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
Equity turnover = Net sales ÷ Shareholders’ equity
= 15,861,608 ÷ 8,848,011 = 1.79
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Parker-Hannifin Corp. equity turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |