The business behind the dividend
| Measure | PH | Median | Formula |
|---|---|---|---|
| Return on equity | 23.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 21.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $3.54bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $3.90bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 23.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 17.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.53x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 12.64x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.26x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 4.67x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.20x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 23.7% | 25.8% | 23.6% | 20.2% | 14.9% | 20.8% | 19.3% | 25.6% | 18.1% | 18.7% | 20.2% |
| Return on capital employed | 21.5% | 20.5% | 18.7% | 14.9% | 14.6% | 16.4% | 13.4% | 17.1% | 18.8% | 16.1% | 16.4% |
| Operating margin | 23.6% | 21.9% | 20.4% | 17.9% | 18.8% | 17.1% | 14.4% | 15.6% | 14.3% | 14.9% | 17.1% |
| Net margin | 17.0% | 17.8% | 14.3% | 10.9% | 8.3% | 12.2% | 8.8% | 10.6% | 7.4% | 8.2% | 10.6% |
| Debt to equity | 0.53x | 0.55x | 0.80x | 1.22x | 1.30x | 0.78x | 1.36x | 1.19x | 0.85x | 1.12x | 0.85x |
| Current ratio | 1.26x | 1.19x | 0.93x | 0.88x | 2.06x | 1.81x | 1.60x | 2.43x | 1.59x | 1.41x | 1.41x |
| Cash conversion | 1.20x | 1.07x | 1.19x | 1.43x | 1.86x | 1.47x | 1.72x | 1.13x | 1.51x | 1.32x | 1.32x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, Parker-Hannifin pays out less than 45 of them. The median for that group is 28.1%, against this company’s 24.0%.
Closest on free cash flow
- Trinet Group (TNET) 22.2%
- Ford Motor (F) 24.0%
- Knight-Swift Transportation Holdings (KNX) 24.9%
- DOVER (DOV) 25.3%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →