Donaldson Company Inc (DCI)
Current ratio
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,461,700 | 1,475,500 | 1,422,500 | 1,479,400 | 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 |
| Total current liabilities | US$ in thousands | 757,200 | 760,100 | 765,800 | 800,600 | 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 |
| Current ratio | 1.93 | 1.94 | 1.86 | 1.85 | 1.84 | 1.91 | 1.47 | 1.49 | 1.70 | 1.90 | 2.33 | 2.35 | 2.23 | 2.25 | 2.06 | 2.23 | 2.05 | 2.18 | 2.25 | 2.73 |
July 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,461,700K ÷ $757,200K
= 1.93
The current ratio of Donaldson Company Inc. has demonstrated notable fluctuation over the analyzed period from October 31, 2020, through July 31, 2025. Initially, at the end of October 2020, the ratio was relatively high at 2.73, indicating that current assets significantly exceeded current liabilities, providing a comfortable liquidity cushion.
Throughout 2021, the ratio experienced a decline, reaching 2.23 by October 31, 2021, and maintaining a similar level into early 2022, with minor decreases thereafter. For example, on April 30, 2022, the ratio was 2.25. This suggests a gradual weakening of liquidity but still maintaining a healthy buffer.
In 2022 and early 2023, the ratio remained above 2. indicating continued adequacy in short-term liquidity. However, from mid-2023 onward, there is a marked downward trend. By October 31, 2023, the ratio had fallen to 1.49, reflecting a reduced margin of safety in covering current liabilities with current assets.
This downward trend persisted into early 2024, where the ratio slightly declined to 1.47, but showed signs of stabilization and modest recovery later in the year, reaching approximately 1.85 by October 31, 2024, and maintaining relatively stable levels through January 2025 to July 2025, with ratios around 1.85 to 1.94.
Overall, over the multi-year span, the current ratio indicates a gradual decrease in liquidity margins, especially after 2022. Despite this decline, the ratio generally remains above 1.5, suggesting that the company's liquidity position, while weaker than at the earlier stages of the examined period, continues to meet short-term obligations. The observed trend warrants attention, as continued decreases could potentially signal evolving liquidity concerns if the current ratio moves closer to or below 1.0.