Parker Hannifin key statistics and ratios
In fiscal 2026, Parker Hannifin had return on equity of 25.1%, an operating margin of 23.6%, debt equal to 61.8% of equity and a current ratio of 1.26. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2010Jun 2010 | 2011Jun 2011 | 2012Jun 2012 | 2013Jun 2013 | 2014Jun 2014 | 2015Jun 2015 | 2016Jun 2016 | 2017Jun 2017 | 2018Jun 2018 | 2019Jun 2019 | 2020Jun 2020 | 2021Jun 2021 | 2022Jun 2022 | 2023Jun 2023 | 2024Jun 2024 | 2025Jun 2025 | 2026Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross margin | 21.5% | 24.0% | 24.2% | 22.5% | 22.9% | 24.0% | 22.3% | 23.6% | 24.9% | 25.4% | 24.8% | 33.1% | 33.5% | 33.7% | 35.8% | 36.9% | 37.7% |
| Operating margin | 11.4% | 14.8% | 15.2% | 13.8% | 13.5% | 14.5% | 13.9% | 14.9% | 14.3% | 15.6% | 14.4% | 17.1% | 18.8% | 17.9% | 20.4% | 21.9% | 23.6% |
| Net margin | 5.5% | 8.5% | 8.8% | 7.3% | 7.9% | 8.0% | 7.1% | 8.2% | 7.4% | 10.6% | 8.8% | 12.2% | 8.3% | 10.9% | 14.3% | 17.8% | 17.0% |
| Free-cash-flow margin | 10.9% | 7.8% | 10.0% | 7.1% | 8.9% | 9.0% | 9.3% | 9.1% | 9.4% | 10.7% | 13.4% | 16.5% | 13.9% | 13.6% | 15.0% | 16.8% | 18.2% |
| Return on equity | 12.7% | 21.5% | 22.4% | 17.8% | 16.8% | 17.2% | 16.7% | 20.0% | 19.1% | 25.8% | 19.7% | 23.9% | 15.3% | 21.7% | 25.4% | 27.4% | 25.1% |
| Return on assets | 5.6% | 10.1% | 10.4% | 8.0% | 8.1% | 7.9% | 6.6% | 7.1% | 6.9% | 9.2% | 6.4% | 8.7% | 5.7% | 7.5% | 9.6% | 12.0% | 12.1% |
| Asset turnover | 1.01 | 1.19 | 1.19 | 1.10 | 1.02 | 1.00 | 0.94 | 0.87 | 0.93 | 0.87 | 0.73 | 0.71 | 0.69 | 0.68 | 0.67 | 0.68 | 0.71 |
| Current ratio | 1.63 | 1.80 | 1.81 | 1.57 | 1.87 | 2.32 | 2.20 | 1.41 | 1.59 | 2.43 | 1.60 | 1.81 | 2.06 | 0.88 | 0.93 | 1.19 | 1.26 |
| Debt to equity | 49.0% | 32.8% | 35.3% | 72.5% | 47.2% | 57.7% | 72.5% | 121.7% | 93.7% | 129.0% | 147.5% | 78.4% | 145.6% | 139.0% | 104.9% | 81.0% | 61.8% |
| Interest cover (operating income ÷ interest) | 11.0x | 18.3x | 21.6x | 19.6x | 21.7x | 15.5x | 11.5x | 11.0x | 9.5x | 11.8x | 6.4x | 9.8x | 11.7x | 5.9x | 8.0x | 10.6x | 12.6x |
| Effective tax rate | 26.3% | 25.2% | 26.7% | 27.6% | 33.1% | 29.3% | 27.6% | 26.0% | 37.7% | 21.8% | 20.2% | 22.3% | 18.5% | 22.2% | 20.9% | 14.0% | 20.0% |
| R&D as % of revenue | 3.2% | 2.9% | 2.8% | 3.1% | 3.1% | 3.2% | 3.2% | 2.8% | 2.3% | 2.1% | 1.7% | 1.4% | 1.2% | 1.4% | 1.3% | 1.2% | 1.2% |
| SG&A as % of revenue | 12.8% | 11.9% | 11.6% | 11.9% | 12.4% | 12.2% | 12.0% | 11.7% | 11.5% | 10.8% | 12.1% | 16.6% | 15.8% | 17.6% | 16.6% | 16.4% | 16.1% |
| Capital spending as % of revenue | 1.3% | 1.7% | 1.7% | 2.0% | 1.6% | 1.7% | 1.3% | 1.7% | 1.7% | 1.4% | 1.7% | 1.5% | 1.5% | 2.0% | 2.0% | 2.2% | 2.1% |
| Free cash flow ÷ net income | 196.7% | 91.5% | 113.9% | 97.5% | 112.5% | 113.4% | 131.5% | 111.5% | 127.2% | 100.7% | 152.9% | 135.4% | 168.1% | 124.8% | 104.9% | 94.6% | 107.0% |
| Dividends ÷ net income | 29.4% | 19.6% | 20.9% | 26.9% | 26.7% | 33.6% | 42.4% | 35.1% | 34.4% | 27.1% | 37.8% | 27.2% | 43.3% | 33.8% | 27.5% | 24.4% | 25.7% |
| Dividends and buybacks ÷ free cash flow | 17.2% | 93.7% | 53.2% | 55.5% | 41.2% | 154.8% | 87.6% | 62.3% | 55.3% | 82.9% | 36.4% | 29.3% | 46.6% | 38.5% | 37.3% | 78.6% | 56.3% |
| Quarter | 2025 Q1Sept 2024 | 2025 Q2Dec 2024 | 2025 Q3Mar 2025 | 2025 Q4Jun 2025 | 2026 Q1Sept 2025 | 2026 Q2Dec 2025 | 2026 Q3Mar 2026 | 2026 Q4Jun 2026 |
|---|---|---|---|---|---|---|---|---|
| Gross margin | 36.8% | 36.3% | 36.9% | 37.3% | 37.5% | 37.3% | 36.8% | 39.0% |
| Operating margin | 21.6% | 20.9% | 22.3% | 22.7% | 23.3% | 22.8% | 22.4% | 25.6% |
| Net margin | 14.2% | 20.0% | 19.4% | 17.6% | 15.9% | 16.3% | 16.5% | 19.0% |
| Free-cash-flow margin | 13.2% | 17.2% | 10.9% | 25.5% | 13.6% | 14.8% | 16.1% | 27.2% |
| Current ratio | 0.96 | 1.06 | 1.21 | 1.19 | 1.07 | 1.18 | 1.13 | 1.26 |
| Debt to equity | 51.8% | 50.8% | 55.4% | 54.9% | 54.3% | 52.3% | 46.3% | 53.1% |
| SG&A as % of revenue | 17.3% | 16.5% | 15.8% | 16.0% | 17.2% | 16.2% | 16.1% | 15.2% |
Financial health
- Short-term assets cover short-term liabilities $7.7bn of assets due within a year against $6.1bn of liabilities due within a year.
- Short-term assets cover long-term liabilities $7.7bn short-term assets against $9.4bn of longer-dated liabilities.
- More cash than debt $501m of cash against $8.2bn of debt.
- Debt below 40% of shareholders' equity Debt is 53% of equity.
- Debt burden no higher than five years ago Debt to equity moved from 71% to 53% over five years.
- A year's operating cash flow covers at least 20% of debt $4.4bn of operating cash flow against $8.2bn of debt.
- Operating profit covers interest at least five times over Operating income of $5.1bn against $401m of interest.
Moat
Moderate moat
How hard Parker Hannifin's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 12 / 20
Net income has been a median 7.7% of total assets over 10 years.
- Pricing power 9 / 20
Gross margin has been a median 33.3%, moving by 5.3 percentage points (standard deviation) across 10 years.
- Durability 15 / 20
Operating margin has been a median 17.5%; its worst year was 14.4%.
- Cash conversion 17 / 20
Free cash flow was positive in 10 of 10 years, at a median 13.8% of revenue.
- Discipline 17 / 20
The diluted share count fell 2.1% over five years; stock-based pay has been a median 0.8% of revenue.
AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.
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