Donaldson Company Inc (DCI)
Receivables turnover
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,690,900 | 3,586,300 | 3,430,800 | 3,306,600 | 2,853,900 |
| Receivables | US$ in thousands | 662,200 | 629,700 | 599,700 | 616,600 | 552,700 |
| Receivables turnover | 5.57 | 5.70 | 5.72 | 5.36 | 5.16 |
July 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,690,900K ÷ $662,200K
= 5.57
The receivables turnover ratio of Donaldson Company Inc demonstrates a general upward trend over the specified period. As of July 31, 2021, the ratio was 5.16, indicating that the company collected its average accounts receivable approximately 5.16 times during that year. By July 31, 2022, this ratio had increased to 5.36, reflecting an improvement in the efficiency of accounts receivable collections.
This positive trajectory continued into July 31, 2023, with the ratio reaching 5.72, suggesting further enhanced collection efficiency or a potentially more conservative credit policy. However, slight fluctuations are noted in subsequent years, with the ratio marginally decreasing to 5.70 by July 31, 2024, and further to 5.57 by July 31, 2025. These minor decreases may indicate a slight slowdown in collection activity or a deliberate loosening of credit, but overall, the ratio remains relatively stable and relatively high.
Overall, the data indicates that Donaldson Company Inc has maintained and slightly improved its receivables turnover efficiency from 2021 through 2023. The ratios are indicative of effective receivables management, with a slight stabilization or mild decline in recent years. This pattern suggests consistent efforts in receivables collection, contributing positively to the company's liquidity position and operational efficiency.