Donaldson Company Inc (DCI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 232,700 | 223,700 | 193,800 | 217,800 | 187,100 | 186,000 | 179,400 | 161,000 | 193,300 | 168,700 | 170,400 | 200,800 | 222,800 | 215,300 | 207,300 | 270,000 | 236,600 | 326,500 | 211,100 | 210,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,100 | — | — | — | — | — |
| 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 |
| Cash ratio | 0.30 | 0.30 | 0.22 | 0.25 | 0.25 | 0.26 | 0.31 | 0.28 | 0.31 | 0.28 | 0.27 | 0.35 | 0.37 | 0.39 | 0.42 | 0.64 | 0.58 | 0.75 | 0.42 | 0.40 |
July 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($232,700K
+ $—K)
÷ $782,500K
= 0.30
The cash ratio of Donaldson Company Inc has shown some variability over the past few years. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.
The cash ratio has fluctuated between 0.22 and 0.75 over the past 20 quarters, with the most recent value being 0.30 as of July 31, 2024. This indicates that for every dollar of short-term liabilities, the company had $0.30 in cash and cash equivalents available.
The highest cash ratio was observed in the fourth quarter of 2020 at 0.75, suggesting a strong liquidity position at that time. On the other hand, the lowest cash ratio of 0.22 was seen in the first quarter of 2024.
Overall, the trend in Donaldson Company Inc's cash ratio indicates some variability in its liquidity position over time, with the company generally maintaining a moderate level of cash reserves relative to its short-term obligations. Management should continue to monitor and manage the company's cash position effectively to ensure it remains well-equipped to meet its financial obligations.