Parker-Hannifin Corporation — Earnings Quality Grade F
PH · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 54 days, change +1 days YoY
AR growth 1.5% vs revenue growth -0.4%
Revenue -0.4%, CFFO 11.6%. Cash follows revenue
Expense Quality
Inventory 1.9% vs COGS -2.1%. Normal
CapEx growth 8.8% vs revenue -0.4%. Normal
SG&A/Gross Profit = 44.5%. Normal
Gross margin 36.9%, change +1.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.07. Profits backed by cash
FCF $3.3B, FCF/NI = 0.95
Accruals ratio = -0.8%. Low accruals
Cash $0.5B covers only 5% of debt $9.3B
Balance Sheet Health
Goodwill+Intangibles $18.1B = 132% of equity. Over 50%
Debt/EBITDA = 1.7x. Healthy
Other assets 5.1% vs revenue -0.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.49 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09