Donaldson Company Inc (DCI)
Current ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,438,100 | 1,286,000 | 1,406,500 | 1,244,000 | 1,096,700 |
| Total current liabilities | US$ in thousands | 782,500 | 756,400 | 629,600 | 606,600 | 406,800 |
| Current ratio | 1.84 | 1.70 | 2.23 | 2.05 | 2.70 |
July 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,438,100K ÷ $782,500K
= 1.84
The current ratio of Donaldson Company Inc has exhibited some fluctuations over the past five years. In the most recent fiscal year ending July 31, 2024, the current ratio stood at 1.84, indicating that the company had $1.84 in current assets for every $1 in current liabilities. This represents an improvement from the previous year's current ratio of 1.70.
When compared to the ratios of the preceding years, the current ratio was notably higher in fiscal years 2020 and 2022 at 2.70 and 2.23 respectively, suggesting that the company had stronger liquidity positions during those periods. On the other hand, the current ratio was comparatively lower in fiscal years 2021 and 2023 at 2.05 and 1.70, signaling potential challenges in meeting short-term obligations.
Overall, while the current ratio has varied over the years, it is essential to consider the trend in conjunction with other financial metrics to gain a comprehensive understanding of Donaldson Company Inc's liquidity position and financial health.