Donaldson Company Inc (DCI)
Payables 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 |
| Payables | US$ in thousands | 368,600 | 379,400 | 304,900 | 338,500 | 293,900 |
| Payables turnover | 6.52 | 6.09 | 7.45 | 6.62 | 6.40 |
July 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,404,700K ÷ $368,600K
= 6.52
The payables turnover ratio for Donaldson Company Inc demonstrates a fluctuation over the analyzed period spanning from July 31, 2021, to July 31, 2025. Specifically, the ratio increased from 6.40 times in 2021 to a peak of 7.45 times in 2023, indicating an improvement in the company's ability to rapidly settle its trade payables during this period. This rising trend suggests that the company was paying its suppliers more frequently within the year, potentially reflecting stronger cash flow management or favorable credit terms.
Following the peak in 2023, the ratio declined to 6.09 in 2024, signaling a reduction in the payables turnover rate. This decrease may imply a lengthening of payment periods to suppliers, possibly due to shifting credit policies, strategic liquidity management, or external factors affecting cash flow.
In 2025, the ratio experienced a slight recovery to 6.52, although it did not reach the prior peak levels. This indicates a modest tightening of payment activity compared to the previous year but remains below the 2023 high point. Overall, the data portrays a pattern of intermediate to swift payment practices with periods of acceleration and deceleration, reflecting adaptive management of payables in response to internal and external considerations.