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Parker-Hannifin PH Tax Credit Carryforward Valuation Allowance

Tax Credit Carryforward Valuation Allowance at other companies

Raytheon Technologies logo
Raytheon TechnologiesRTX
$1.43B-0.6%
Honeywell International logo
Honeywell InternationalHON
$1.37B+9.7%

Other financials

Income statement

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Revenue$5.8B+9.8%
Gross profit$2.2B+14.8%
Net income$1.1B+18.2%
EPS (diluted)$8.54+19.4%

Balance sheet

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Cash & equivalents$501.0M+7.3%
Total debt$9.9B+19.4%
Total equity$15.4B+12.6%
Total assets$30.9B+4.7%

Cash flow

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Operating cash flow$1.7B+18.3%
CapEx$173.0M+32.1%
Free cash flow$1.6B+17.0%

Valuation

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Market cap$134.89B+51.4%
P/E37×+11.8×
P/S6.3×+1.8×

Profitability

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Gross margin37.7%+0.8pp
Net margin17%-0.8pp
FCF margin18.2%+1.3pp

Returns & leverage

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Return on equity25.1%-2.3pp
Debt / equity0.7×+0.1×
Current ratio1.3×+0.1×

Where this comes from

Reported directly by Parker-Hannifin in its filing.

Tagged under the XBRL concept us-gaap:TaxCreditCarryforwardValuationAllowance.

The source filing: Parker-Hannifin’s 10-K, filed August 22, 2025.

Filed
Aug 22, 2025
Fiscal year
FY2025
Accession
0000076334-25-000035

As of June 30, 2025, we recorded deferred tax assets of $114 million resulting from $492 million in loss carryforwards. A valuation allowance of $106 million related to the loss carryforwards has been established due to the uncertainty of their realization. Of this valuation allowance, $92 million relates to non-operating entities whose loss carryforward utilization is considered to be remote. Some of the loss carryforwards can be carried forward indefinitely; others can be carried forward from three years to 20 years. In addition, a valuation allowance of $35 million related to other future deductible items has been established due to the uncertainty of their realization.

ITEM 8. Financial Statements and Supplementary Data.

FAQ

What is Parker-Hannifin's tax credit carryforward valuation allowance?
Parker-Hannifin (PH) reported tax credit carryforward valuation allowance of $35M in Q2 2025.
What is the long-term trend for Parker-Hannifin's tax credit carryforward valuation allowance?
Over 4 years (2021 to 2025), Parker-Hannifin's tax credit carryforward valuation allowance has grown at a -55.2% compound annual growth rate (CAGR), from $865.76M to $35M.
What does tax credit carryforward valuation allowance mean?
This is a contra-asset account that reduces the carrying value of tax credit carryforwards when it is more likely than not that some or all of the credits will not be realized. It reflects management's assessment of the company's ability to generate sufficient future taxable income. A high allowance suggests uncertainty regarding the realization of tax benefits.

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