Donaldson Company Inc (DCI)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,311,900 | 2,290,700 | 2,279,800 | 2,255,600 | 2,270,300 | 2,289,300 | 2,286,600 | 2,295,400 | 2,239,200 | 2,141,800 | 2,065,700 | 1,968,900 | 1,881,000 | 1,783,100 | 1,697,600 | 1,682,500 | 1,707,900 | 1,787,900 | 1,837,400 | 1,874,900 |
| Inventory | US$ in thousands | 476,700 | 444,700 | 433,400 | 429,600 | 418,100 | 449,700 | 501,300 | 490,100 | 502,400 | 510,700 | 480,700 | 444,700 | 384,500 | 360,100 | 347,600 | 329,500 | 322,700 | 346,500 | 350,100 | 361,500 |
| Inventory turnover | 4.85 | 5.15 | 5.26 | 5.25 | 5.43 | 5.09 | 4.56 | 4.68 | 4.46 | 4.19 | 4.30 | 4.43 | 4.89 | 4.95 | 4.88 | 5.11 | 5.29 | 5.16 | 5.25 | 5.19 |
July 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,311,900K ÷ $476,700K
= 4.85
The inventory turnover ratio for Donaldson Company Inc has been relatively stable over the past few years, ranging between 4.19 and 5.43. A higher inventory turnover ratio indicates that the company is selling its products quickly and efficiently, which is generally viewed positively by investors and analysts.
Overall, Donaldson Company Inc has maintained a healthy level of inventory turnover, reflecting effective management of inventory levels and a strong ability to convert inventory into sales. This consistency in inventory turnover suggests that the company has a solid grasp on its supply chain and is effectively balancing inventory levels with customer demand.
It is evident that Donaldson Company Inc has been able to sustain a consistent rate of inventory turnover, which is a positive indicator of the company's operational efficiency and financial health.