Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Parker-Hannifin Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Parker-Hannifin Corp. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Parker-Hannifin Corp. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Parker-Hannifin Corp. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Parker-Hannifin Corp. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Parker-Hannifin Corp. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Gross Profit Margin
Parker-Hannifin Corp., gross profit margin 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) | |||||||
| Gross profit | 4,474,341) | 3,897,960) | 3,409,002) | 3,616,840) | 3,539,551) | 2,840,350) | |
| Net sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 28.21% | 27.17% | 24.89% | 25.26% | 24.75% | 23.61% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Boeing Co. | 5.26% | 4.84% | -9.78% | 5.83% | — | — | |
| Caterpillar Inc. | 26.91% | 26.30% | 25.47% | 27.83% | — | — | |
| Eaton Corp. plc | 33.19% | 32.28% | 30.52% | 32.97% | — | — | |
| GE Aerospace | 24.55% | 24.19% | 17.26% | 23.52% | — | — | |
| Honeywell International Inc. | 36.99% | 35.85% | 32.07% | 33.70% | — | — | |
| Lockheed Martin Corp. | 12.56% | 13.52% | 13.23% | — | — | — | |
| RTX Corp. | 20.38% | 19.40% | 15.08% | 25.93% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 4,474,341 ÷ 15,861,608 = 28.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Parker-Hannifin Corp. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Parker-Hannifin Corp., operating profit margin 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) | |||||||
| Operating income | 2,854,346) | 2,479,990) | 1,753,676) | 2,062,316) | 1,886,882) | 1,429,676) | |
| Net sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 18.00% | 17.29% | 12.80% | 14.40% | 13.19% | 11.88% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Boeing Co. | -5.33% | -4.66% | -21.95% | -2.58% | — | — | |
| Caterpillar Inc. | 13.97% | 14.27% | 11.67% | 16.33% | — | — | |
| Eaton Corp. plc | 14.55% | 15.69% | 11.45% | 13.38% | — | — | |
| GE Aerospace | 6.05% | 8.58% | 5.49% | 12.84% | — | — | |
| Honeywell International Inc. | 18.12% | 18.03% | 17.45% | 18.66% | — | — | |
| Lockheed Martin Corp. | 12.65% | 13.61% | 13.22% | — | — | — | |
| RTX Corp. | 8.07% | 7.70% | -3.34% | 11.64% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Capital Goods | 8.29% | 9.11% | 3.00% | — | — | — | |
| Operating Profit Margin, Industry | |||||||
| Industrials | 9.19% | 9.36% | 3.31% | — | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 2,854,346 ÷ 15,861,608 = 18.00%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Parker-Hannifin Corp. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Parker-Hannifin Corp., net profit margin 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) | |
| Net sales | 15,861,608) | 14,347,640) | 13,695,520) | 14,320,324) | 14,302,392) | 12,029,312) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 8.29% | 12.17% | 8.81% | 10.56% | 7.42% | 8.18% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Boeing Co. | -7.41% | -6.75% | -20.42% | -0.83% | — | — | |
| Caterpillar Inc. | 11.85% | 13.47% | 7.68% | 12.00% | — | — | |
| Eaton Corp. plc | 11.86% | 10.92% | 7.90% | 10.34% | — | — | |
| GE Aerospace | 0.31% | -9.17% | 7.81% | -5.69% | — | — | |
| Honeywell International Inc. | 14.00% | 16.11% | 14.64% | 16.73% | — | — | |
| Lockheed Martin Corp. | 8.69% | 9.42% | 10.45% | — | — | — | |
| RTX Corp. | 7.75% | 6.00% | -6.22% | 7.19% | — | — | |
| Net Profit Margin, Sector | |||||||
| Capital Goods | 5.27% | 3.71% | 1.85% | — | — | — | |
| Net Profit Margin, Industry | |||||||
| Industrials | 5.16% | 5.96% | 0.25% | — | — | — | |
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 profit margin = 100 × Net income attributable to common shareholders ÷ Net sales
= 100 × 1,315,605 ÷ 15,861,608 = 8.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Parker-Hannifin Corp. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Equity (ROE)
Parker-Hannifin Corp., ROE 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) | |
| Shareholders’ equity | 8,848,011) | 8,398,307) | 6,113,983) | 5,961,969) | 5,859,866) | 5,261,649) | |
| Profitability Ratio | |||||||
| ROE1 | 14.87% | 20.79% | 19.73% | 25.37% | 18.10% | 18.69% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Boeing Co. | — | — | — | — | — | — | |
| Caterpillar Inc. | 42.25% | 39.37% | 19.56% | 41.77% | — | — | |
| Eaton Corp. plc | 14.45% | 13.06% | 9.44% | 13.75% | — | — | |
| GE Aerospace | 0.62% | -16.17% | 16.04% | -17.58% | — | — | |
| Honeywell International Inc. | 29.74% | 29.85% | 27.23% | 33.22% | — | — | |
| Lockheed Martin Corp. | 61.86% | 57.62% | 113.60% | — | — | — | |
| RTX Corp. | 7.16% | 5.29% | -4.88% | 13.25% | — | — | |
| ROE, Sector | |||||||
| Capital Goods | 13.39% | 8.48% | 4.42% | — | — | — | |
| ROE, Industry | |||||||
| Industrials | 15.70% | 15.61% | 0.67% | — | — | — | |
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
ROE = 100 × Net income attributable to common shareholders ÷ Shareholders’ equity
= 100 × 1,315,605 ÷ 8,848,011 = 14.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Parker-Hannifin Corp. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Assets (ROA)
Parker-Hannifin Corp., ROA 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) | |
| Total assets | 25,943,943) | 20,341,200) | 19,738,189) | 17,576,690) | 15,320,087) | 15,489,904) | |
| Profitability Ratio | |||||||
| ROA1 | 5.07% | 8.58% | 6.11% | 8.60% | 6.92% | 6.35% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Boeing Co. | -3.60% | -3.03% | -7.80% | -0.48% | — | — | |
| Caterpillar Inc. | 8.18% | 7.84% | 3.83% | 7.77% | — | — | |
| Eaton Corp. plc | 7.03% | 6.30% | 4.43% | 6.74% | — | — | |
| GE Aerospace | 0.12% | -3.28% | 2.25% | -1.87% | — | — | |
| Honeywell International Inc. | 7.97% | 8.60% | 7.40% | 10.47% | — | — | |
| Lockheed Martin Corp. | 10.84% | 12.41% | 13.47% | — | — | — | |
| RTX Corp. | 3.27% | 2.39% | -2.17% | 3.96% | — | — | |
| ROA, Sector | |||||||
| Capital Goods | 2.84% | 1.86% | 0.80% | — | — | — | |
| ROA, Industry | |||||||
| Industrials | 3.40% | 3.48% | 0.12% | — | — | — | |
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
ROA = 100 × Net income attributable to common shareholders ÷ Total assets
= 100 × 1,315,605 ÷ 25,943,943 = 5.07%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Parker-Hannifin Corp. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |