Donaldson Company Inc (DCI)
Fixed asset turnover
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,586,300 | 3,530,400 | 3,478,200 | 3,429,800 | 3,430,800 | 3,441,300 | 3,418,800 | 3,393,000 | 3,306,600 | 3,183,700 | 3,092,300 | 2,965,600 | 2,837,800 | 2,688,100 | 2,551,600 | 2,533,300 | 2,568,200 | 2,677,700 | 2,765,200 | 2,811,400 |
| Property, plant and equipment | US$ in thousands | 645,500 | 642,800 | 647,000 | 642,300 | 652,900 | 640,900 | 625,800 | 590,800 | 594,400 | 591,100 | 601,000 | 609,700 | 617,800 | 626,300 | 624,300 | 617,100 | 631,600 | 614,300 | 623,100 | 606,200 |
| Fixed asset turnover | 5.56 | 5.49 | 5.38 | 5.34 | 5.25 | 5.37 | 5.46 | 5.74 | 5.56 | 5.39 | 5.15 | 4.86 | 4.59 | 4.29 | 4.09 | 4.11 | 4.07 | 4.36 | 4.44 | 4.64 |
July 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,586,300K ÷ $645,500K
= 5.56
Donaldson Company Inc's fixed asset turnover ratio has been relatively stable over the past few years, ranging between 4.07 and 5.74. This indicates that, on average, for each dollar of fixed assets the company has, it generates between $4.07 and $5.74 in sales. The higher the fixed asset turnover ratio, the more efficiently the company is using its fixed assets to generate revenue.
It is positive to see that the fixed asset turnover ratio has generally been above 5 in recent quarters, suggesting that Donaldson Company Inc has been effectively utilizing its fixed assets to drive sales. However, there was a slight decline in the ratio in the most recent quarter, which could be worth monitoring to ensure the company's asset utilization remains strong.
Overall, the trend in Donaldson Company Inc's fixed asset turnover ratio demonstrates a solid operational performance in terms of managing its fixed assets efficiently to generate revenue.