Donaldson Company Inc (DCI)
Total asset 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 |
| Total assets | US$ in thousands | 2,914,300 | 2,770,500 | 2,600,300 | 2,400,200 | 2,244,600 |
| Total asset turnover | 1.23 | 1.24 | 1.27 | 1.19 | 1.15 |
July 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,586,300K ÷ $2,914,300K
= 1.23
Donaldson Company Inc's total asset turnover has been relatively stable over the past five years, ranging from 1.15 to 1.27. The total asset turnover ratio measures how efficiently the company is utilizing its assets to generate sales revenue. A higher ratio indicates that the company is generating more sales revenue per dollar of assets.
In this case, the company's total asset turnover has generally been above 1, which suggests that Donaldson Company Inc has been effectively utilizing its assets to generate sales. However, there was a slight decrease in the ratio in 2021 compared to 2020, but it then increased in 2022. This indicates that there may have been fluctuations in the company's asset efficiency during these years.
Overall, the trend in Donaldson Company Inc's total asset turnover suggests that the company has been managing its assets well in generating sales revenue, although further analysis of the factors influencing the ratio fluctuations in specific years would provide a more detailed insight into the company's asset utilization efficiency.