Donaldson Company Inc (DCI)

The current ratio of Donaldson Company Inc. exhibits fluctuations over the period from July 31, 2021, to July 31, 2025. As of July 31, 2021, the current ratio stood at 2.05, indicating that the company's current assets were slightly more than twice its current liabilities, reflecting a comfortable liquidity position. By July 31, 2022, the ratio increased to 2.23, suggesting an improvement in liquidity and greater coverage of short-term obligations.

However, this trend reversed by July 31, 2023, when the current ratio declined to 1.70. Although still above 1, indicating that current assets exceeded current liabilities, the reduction signals a decrease in liquidity buffer, potentially raising concerns about short-term financial flexibility. The ratio then experienced a moderate increase to 1.84 by July 31, 2024, suggesting some recovery in liquidity levels, but it did not revert to the earlier high observed in 2022.

The most recent data for July 31, 2025, shows a further increase to 1.93, approaching the previous year’s ratio and indicating a strengthening in the company's liquidity position. Overall, the trend reflects some variability in the company's ability to meet short-term obligations, with initial growth followed by a decline mid-period and subsequent recovery towards the latter part. The current ratios over this timeframe suggest that while the company's liquidity position has experienced fluctuations, it generally remains above the critical threshold of 1, implying ongoing capacity to cover current liabilities, though the narrowing margin warrants continued monitoring.