Donaldson Company Inc (DCI)
Cash ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 180,400 | 232,700 | 187,100 | 193,300 | 222,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 757,200 | 782,500 | 756,400 | 629,600 | 606,600 |
| Cash ratio | 0.24 | 0.30 | 0.25 | 0.31 | 0.37 |
July 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($180,400K
+ $—K)
÷ $757,200K
= 0.24
The cash ratio of Donaldson Company Inc has demonstrated a declining trend over the observed period from July 31, 2021, to July 31, 2025. Specifically, the ratio decreased from 0.37 in 2021 to 0.31 in 2022, indicating a modest reduction in the company’s ability to cover its current obligations using its cash and cash equivalents alone. This downward trajectory continued into 2023, with the ratio declining further to 0.25, suggesting an even lower liquidity buffer in terms of immediate liquidity.
In the following year, 2024, the cash ratio experienced a slight recovery, increasing modestly to 0.30. However, this increase was not sustained, as by July 2025, the ratio had decreased again to 0.24, representing the lowest level in the analyzed period.
Overall, the decline in the cash ratio over these years indicates a gradual reduction in the company's short-term liquidity in terms of cash and cash equivalents relative to current liabilities. This trend may warrant further analysis to understand whether it results from increased current liabilities, a reduction in cash holdings, or strategic shifts in liquidity management. Nonetheless, the ratio remains below 0.5 across the entire period, suggesting a cautious liquidity position with limited immediate cash coverage for current obligations.