Donaldson Company Inc (DCI)
Receivables turnover
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,586,300 | 3,430,800 | 3,306,600 | 2,853,900 | 2,581,800 |
| Receivables | US$ in thousands | 629,700 | 599,700 | 616,600 | 552,700 | 455,300 |
| Receivables turnover | 5.70 | 5.72 | 5.36 | 5.16 | 5.67 |
July 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,586,300K ÷ $629,700K
= 5.70
The receivables turnover ratio for Donaldson Company Inc has been relatively stable over the past five years, ranging from 5.16 to 5.72. This ratio indicates how efficiently the company is collecting payments from its customers. A higher receivables turnover ratio suggests that the company is more effective in collecting outstanding receivables, which is a positive indicator of liquidity and effective credit management.
In this case, the company's receivables turnover ratio has been consistently above 5, implying that Donaldson Company Inc generally collects its accounts receivables approximately 5 to 6 times per year on average. This can be seen as a good sign of the company's ability to efficiently manage its credit terms and collect payments from customers in a timely manner.
Overall, the stability and relatively high values of the receivables turnover ratio for Donaldson Company Inc indicate sound credit management practices and efficiency in collecting payments from customers over the years.