Donaldson Company Inc (DCI)

The analysis of Donaldson Company Inc.'s days of inventory on hand (DOH) over the specified periods reveals fluctuations indicative of the company's inventory management practices and operational efficiency. As of July 31, 2021, the DOH was 74.56 days, reflecting the average duration inventory remained in stock before being sold or used. This figure increased to 81.89 days by July 31, 2022, representing a period of inventory accumulation or slower inventory turnover during that year.

Subsequently, the DOH decreased to 67.22 days by July 31, 2023, signaling an improvement in inventory turnover, possibly due to enhanced inventory management, increased sales velocity, or adjustments in procurement strategies. However, the trend reversed slightly in the following years, with the DOH rising again to 75.26 days by July 31, 2024, and reaching 77.96 days by July 31, 2025. This increase suggests a modest elongation in inventory holding periods, which could be attributed to shifts in product demand, supply chain dynamics, or strategic inventory levels.

Overall, the period between 2021 and 2023 exhibits a notable reduction in DOH, indicating improved efficiency in inventory management during that time span. The subsequent increase hints at changes in operational strategy or external factors influencing inventory turnover rates. The company's inventory management appears to remain relatively stable but subject to periodic fluctuations consistent with industry conditions and internal policies.