Aureus
AExcellent

Parker-Hannifin Corporation(PH)

A

Financial data as of Jun 30, 2026Improving · Industrials

FCF Margin17.3%Free Cash Flow / Revenue
Cash Conversion119.6%Operating CF / Net Income
Free Cash Flow$3.9B
Revenue$21.5B
Net Cash-$8.0BNet debt position
Debt / FCF2.3xManageable debt load
Current Ratio1.26Adequate short-term liquidity
YoY FCF Growth+17.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (17.3%, 2.3x; 1.8x sector-adjusted)
→
+1Strong YoY FCF growth (17.0% YoY)
→
+1Very low debt-to-FCF ratio (2.3x; 1.8x sector-adjusted)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.3%)
  • Excellent cash conversion (120%)
  • FCF trend is improving

Concerns

  • Net debt position ($8.0B) — 2.3x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.3%
Net Margin17.0%
Operating CF Margin20.3%
CapEx Ratio2.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.0BNet debt position
Debt / FCF2.3xManageable debt load
Current Ratio1.26Adequate liquidity
Debt / Equity0.55Low leverage

Quarterly FCF Trend

+17.0% YoYImproving (+17.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameParker-Hannifin Corporation
SectorIndustrials
Free Cash Flow$3.9B
Revenue$21.5B
Net Income$3.6B
Operating Cash Flow$4.4B
Capital Expenditure$459.0M
FCF Margin17.3%
Cash Conversion Rate119.6%
Net Margin17.0%
Total Debt$8.5B
Total Cash$501.0M
Net Cash-$8.0B
Current Ratio1.26
Debt / Equity0.55
Debt / FCF2.3x
YoY FCF Growth+17.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJun 30, 2026
GradeA
Data SourceYahoo Finance

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