Donaldson Company Inc (DCI)
Payables 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 |
| Payables | US$ in thousands | 379,400 | 370,000 | 325,800 | 324,900 | 304,900 | 311,100 | 302,100 | 320,700 | 338,500 | 335,800 | 324,500 | 310,000 | 293,900 | 268,100 | 228,100 | 209,400 | 187,700 | 202,700 | 210,100 | 229,100 |
| Payables turnover | 6.09 | 6.19 | 7.00 | 6.94 | 7.45 | 7.36 | 7.57 | 7.16 | 6.62 | 6.38 | 6.37 | 6.35 | 6.40 | 6.65 | 7.44 | 8.03 | 9.10 | 8.82 | 8.75 | 8.18 |
July 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,311,900K ÷ $379,400K
= 6.09
The payables turnover ratio for Donaldson Company Inc has exhibited volatility over the past two years, ranging from a low of 6.09 to a high of 9.10. The ratio measures the efficiency with which the company is able to manage its accounts payable by paying vendors and suppliers.
A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently or quickly, which could be a sign of strong liquidity or efficient working capital management. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain relationships with vendors or signal potential financial challenges.
It is important to note that changes in the payables turnover ratio should be analyzed in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance and management of its accounts payable.