Donaldson Company Inc (DCI)
Payables turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,404,700 | 2,363,400 | 2,346,900 | 2,354,700 | 2,319,600 | 2,298,400 | 2,283,600 | 2,255,600 | 2,270,300 | 2,289,300 | 2,286,600 | 2,295,400 | 2,239,200 | 2,148,200 | 2,071,000 | 1,972,100 | 1,882,100 | 1,784,200 | 1,697,700 | 1,682,700 |
| Payables | US$ in thousands | 368,600 | 362,000 | 375,200 | 373,500 | 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 |
| Payables turnover | 6.52 | 6.53 | 6.26 | 6.30 | 6.11 | 6.21 | 7.01 | 6.94 | 7.45 | 7.36 | 7.57 | 7.16 | 6.62 | 6.40 | 6.38 | 6.36 | 6.40 | 6.65 | 7.44 | 8.04 |
July 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,404,700K ÷ $368,600K
= 6.52
The payables turnover ratio for Donaldson Company Inc demonstrates notable fluctuations over the period under review. At the end of October 2020, the ratio was relatively high at 8.04, indicating a swift payment cycle to suppliers. Throughout the subsequent quarters, a general downward trend is observed, reaching a low of approximately 6.11 in July 2024. This decline suggests an elongation in the accounts payable period, implying that the company has been taking longer to settle its supplier obligations over time.
However, the ratio exhibits some periods of stabilization and minor recovery. For instance, from April 2022 onward, the ratio stabilized around the 6.4 to 6.6 range, with slight increases observed in late 2022 and early 2023, peaking at 7.57 in January 2023. Conversely, there is a noticeable dip again to 6.21 in April 2024, followed by a slight decrease to 6.11 in July 2024, before a modest rebound to 6.30 in October 2024.
Overall, the data indicates a trend toward extended supplier payment cycles over the analyzed period, implying that the company has been increasingly managing its payables more conservatively or possibly facing longer credit terms offered by suppliers. These changes could reflect strategic shifts in accounts payable management, working capital policies, or supplier negotiations, with the longer turnover ratios potentially signaling improved liquidity management or altered operational priorities.