Donaldson Company Inc (DCI)
Inventory turnover
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,404,700 | 2,311,900 | 2,270,200 | 2,239,200 | 1,882,200 |
| Inventory | US$ in thousands | 513,600 | 476,700 | 418,100 | 502,400 | 384,500 |
| Inventory turnover | 4.68 | 4.85 | 5.43 | 4.46 | 4.90 |
July 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,404,700K ÷ $513,600K
= 4.68
The inventory turnover ratio for Donaldson Company Inc. exhibits fluctuation over the specified period from July 31, 2021, to July 31, 2025. Starting at 4.90 times in 2021, there was a subsequent decline to 4.46 times in 2022, indicating a period where inventory was sold and replaced less frequently. This decrease may suggest a temporary slowdown in sales, inventory buildup, or adjustments in inventory management practices.
However, the ratio increased substantially to 5.43 times in 2023, representing an improvement in inventory efficiency. This rise implies that inventories were being turned over more rapidly, which could be associated with increased sales activity, better inventory management, or a strategic reduction in excess stock.
Following this peak, the ratio declined somewhat to 4.85 times in 2024, suggesting a slight slowdown in inventory turnover compared to the previous year, potentially reflecting shifts in sales volume or inventory replenishment practices. The ratio further decreased marginally to 4.68 times in 2025, indicating a modest reduction in turnover efficiency relative to 2023 levels but still higher than the lowest point observed in 2022.
Overall, the inventory turnover demonstrated variability, with notable improvement in 2023 relative to the prior years. The fluctuations highlight periods of operational adjustments that impact how efficiently inventory is converted into sales. The general trend suggests that while the company experienced some downturns in inventory turnover, it managed to regain a significant portion of efficiency by 2023, with a subsequent slight decrease thereafter.