Donaldson Company Inc (DCI)
Working capital turnover
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,690,900 | 3,645,600 | 3,633,400 | 3,640,100 | 3,586,300 | 3,530,400 | 3,478,200 | 3,429,800 | 3,430,800 | 3,441,300 | 3,418,800 | 3,393,000 | 3,306,600 | 3,189,700 | 3,101,500 | 2,978,100 | 2,853,800 | 2,698,100 | 2,562,800 | 2,545,700 |
| Total current assets | US$ in thousands | 1,461,700 | 1,475,500 | 1,422,500 | 1,479,400 | 1,438,100 | 1,400,700 | 1,317,200 | 1,313,100 | 1,286,000 | 1,352,600 | 1,349,100 | 1,335,400 | 1,406,500 | 1,367,300 | 1,314,200 | 1,295,800 | 1,244,000 | 1,198,700 | 1,126,300 | 1,143,600 |
| Total current liabilities | US$ in thousands | 757,200 | 760,100 | 765,800 | 800,600 | 782,500 | 735,200 | 893,500 | 882,600 | 756,400 | 712,000 | 580,100 | 569,300 | 629,600 | 606,500 | 638,500 | 581,900 | 606,600 | 548,800 | 499,500 | 419,400 |
| Working capital turnover | 5.24 | 5.10 | 5.53 | 5.36 | 5.47 | 5.30 | 8.21 | 7.97 | 6.48 | 5.37 | 4.45 | 4.43 | 4.26 | 4.19 | 4.59 | 4.17 | 4.48 | 4.15 | 4.09 | 3.52 |
July 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (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 a notable upward trend over the analyzed period. Starting at 3.52 as of October 31, 2020, the ratio gradually increased, reaching a peak of 8.21 by January 31, 2024. This indicates that the company has been utilizing its working capital more efficiently, generating higher sales relative to its working capital base over time.
Between October 2020 and January 2024, the ratio exhibited a consistent growth pattern, with some periods of acceleration, notably from April 30, 2023 (5.37), to October 31, 2023 (7.97), and further to January 31, 2024 (8.21). Such increases suggest an improvement in the company's operational efficiency, possibly due to better management of inventories, receivables, and payables, or an increase in sales volume relative to working capital.
Post-January 2024, the ratio experienced fluctuations, decreasing to 5.30 by April 30, 2024, and remaining relatively stable around the 5.3 to 5.5 range for subsequent periods. These declines indicate a temporary reduction in the efficiency of working capital utilization, potentially due to operational adjustments, seasonal factors, or changes in sales patterns.
Overall, the trend points toward a significant enhancement in the company's ability to generate sales from its working capital over the observed timeframe, culminating in a peak ratio in early 2024. The subsequent stabilization suggests that while the efficiency remains relatively high compared to the initial period, it has plateaued after the notable increase observed earlier.