Donaldson Company Inc (DCI)

The analysis of Donaldson Company Inc.'s days of sales outstanding (DSO) over the specified period reveals a generally stable trend with modest fluctuations. As of July 31, 2021, the DSO was approximately 70.69 days, indicating that, on average, the company took about 71 days to collect receivables. By July 31, 2022, the DSO decreased slightly to approximately 68.06 days, reflecting a marginal improvement in the company's receivables collection efficiency.

The trend continued into July 31, 2023, with the DSO further decreasing to approximately 63.80 days, suggesting an enhancement in the company's ability to convert receivables into cash more rapidly. However, this downward trend was not entirely sustained in subsequent periods. As of July 31, 2024, the DSO increased marginally to about 64.09 days, indicating a slight slowdown in collections, but remaining close to the figure for the previous year. By July 31, 2025, the DSO rose further to approximately 65.49 days, surpassing the two-year low achieved in 2023.

Overall, the DSO trend demonstrates a gradual improvement from 2021 through 2023, suggesting enhanced receivables management and collection efficiency during that period. The slight increases thereafter may point to minor shifts in credit policies, customer payment behavior, or external economic factors impacting the collection cycle. Nonetheless, the DSO values remain within a relatively narrow range, indicating consistent receivables management practices over the analyzed period.