Donaldson Company Inc (DCI)
Working capital 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 current assets | US$ in thousands | 1,438,100 | 1,286,000 | 1,406,500 | 1,244,000 | 1,096,700 |
| Total current liabilities | US$ in thousands | 782,500 | 756,400 | 629,600 | 606,600 | 406,800 |
| Working capital turnover | 5.47 | 6.48 | 4.26 | 4.48 | 3.74 |
July 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,586,300K ÷ ($1,438,100K – $782,500K)
= 5.47
Donaldson Company Inc's working capital turnover has fluctuated over the past five years, ranging from a low of 3.74 in July 2020 to a high of 6.48 in July 2023. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher working capital turnover ratio typically indicates that the company is able to efficiently generate sales using its working capital.
In the most recent period, the working capital turnover ratio was 5.47, which suggests that the company was able to generate $5.47 in revenue for every $1 of working capital invested. This represents a decrease from the previous year's ratio of 6.48. Despite the slight decrease, the ratio remains relatively high, indicating that Donaldson Company Inc is effectively utilizing its working capital to support its operations and drive sales.
Overall, the trend in Donaldson Company Inc's working capital turnover ratio demonstrates fluctuations over the years, but the company has generally shown efficiency in managing its working capital to generate revenue. Monitoring this ratio over time can provide valuable insights into the company's operational efficiency and financial performance.