Donaldson Company Inc (DCI)
Working capital 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 |
| Total current assets | US$ in thousands | 1,461,700 | 1,438,100 | 1,286,000 | 1,406,500 | 1,244,000 |
| Total current liabilities | US$ in thousands | 757,200 | 782,500 | 756,400 | 629,600 | 606,600 |
| Working capital turnover | 5.24 | 5.47 | 6.48 | 4.26 | 4.48 |
July 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,690,900K ÷ ($1,461,700K – $757,200K)
= 5.24
The working capital turnover ratio for Donaldson Company Inc. demonstrates an overall upward trend from July 31, 2021, through July 31, 2023, followed by a subsequent decline in the following years. Specifically, the ratio decreased slightly from 4.48 in 2021 to 4.26 in 2022, indicating a marginal reduction in efficiency in utilizing working capital to generate sales during that period. However, by July 31, 2023, the ratio experienced a significant increase to 6.48, suggesting improved operational efficiency and more effective utilization of working capital in generating sales.
Subsequent periods show a decline to 5.47 in 2024 and further to 5.24 in 2025, reflecting a reduction in the turnover rate relative to the peak achieved in 2023. These fluctuations may be attributable to variations in operational performance, changes in sales volume, or adjustments in working capital management strategies. Overall, the ratio highlights periods of operational improvement followed by a normalization phase, with the highest efficiency recorded in 2023.