Donaldson Company Inc (DCI)
Working capital turnover
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,183,700 | 3,092,300 | 2,965,600 | 2,837,800 | 2,688,100 | 2,551,600 | 2,533,300 | 2,568,200 | 2,677,700 | 2,765,200 | 2,811,400 |
| Total current assets | US$ in thousands | 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 | 1,096,700 | 1,220,500 | 1,121,200 | 1,159,100 |
| Total current liabilities | US$ in thousands | 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 | 406,800 | 432,800 | 498,200 | 531,100 |
| Working capital turnover | 5.47 | 5.30 | 8.21 | 7.97 | 6.48 | 5.37 | 4.45 | 4.43 | 4.26 | 4.18 | 4.58 | 4.15 | 4.45 | 4.14 | 4.07 | 3.50 | 3.72 | 3.40 | 4.44 | 4.48 |
July 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,586,300K ÷ ($1,438,100K – $782,500K)
= 5.47
Donaldson Company Inc's working capital turnover has shown fluctuating trends over the past few years, ranging from 3.40 to 8.21. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. The higher the ratio, the more effective the company is at utilizing its working capital.
In the latest period, the working capital turnover was 5.47, indicating that for every dollar of working capital, the company generated $5.47 in sales revenue. This suggests a relatively efficient use of working capital.
Although there have been fluctuations in the ratio over time, the general trend appears to show an improvement in recent periods, with peaks in January 2024 and October 2023. This improvement indicates that the company has been able to drive more sales with the same amount of working capital, which is a positive sign for its operational efficiency and financial health.
Overall, the upward trend in working capital turnover suggests that Donaldson Company Inc has been managing its working capital effectively to support its sales growth.