The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Parker Hannifin's quick ratio for the quarter that ended in Dec. 2023 was 0.49.
Parker Hannifin has a quick ratio of 0.49. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Parker Hannifin's Quick Ratio or its related term are showing as below:
PH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.49 Med: 1.07 Max: 1.9
Current: 0.49
During the past 13 years, Parker Hannifin's highest Quick Ratio was 1.90. The lowest was 0.49. And the median was 1.07.
PH's Quick Ratio is ranked worse than 93.52% of 3023
companies
in the Industrial Products industry
Industry Median: 1.38
vs PH: 0.49
Parker Hannifin Quick Ratio Historical Data
The historical data trend for Parker Hannifin's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Parker Hannifin's Quick Ratio
For the Specialty Industrial Machinery subindustry, Parker Hannifin's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Parker Hannifin's Quick Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Parker Hannifin's Quick Ratio falls into.
Parker Hannifin Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Parker Hannifin's Quick Ratio for the fiscal year that ended in Jun. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Parker Hannifin (NYSE:PH) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Parker Hannifin Quick Ratio Related Terms
Thank you for viewing the detailed overview of Parker Hannifin's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Parker Hannifin (Parker Hannifin) Business Description
Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.
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