Donaldson Company Inc (DCI)
Quick ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 180,400 | 232,700 | 187,100 | 193,300 | 222,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 662,200 | 629,700 | 599,700 | 616,600 | 552,700 |
| Total current liabilities | US$ in thousands | 757,200 | 782,500 | 756,400 | 629,600 | 606,600 |
| Quick ratio | 1.11 | 1.10 | 1.04 | 1.29 | 1.28 |
July 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($180,400K
+ $—K
+ $662,200K)
÷ $757,200K
= 1.11
The quick ratio of Donaldson Company Inc. demonstrates a relatively stable liquidity position over the observed period, with minor fluctuations. As of July 31, 2021, the quick ratio stood at 1.28, indicating that the company's liquid assets were sufficient to cover its current liabilities by approximately 28%. This ratio experienced a slight increase to 1.29 in 2022, suggesting a marginal improvement in liquidity and an ability to meet short-term obligations with liquid assets.
However, by July 31, 2023, the quick ratio declined to 1.04, reflecting a decrease in liquidity or a relative increase in current liabilities or reduction in liquid assets. Despite this decline, a ratio above 1.0 still indicates that the company maintains enough liquid assets to cover its immediate liabilities without relying on inventory sales.
Subsequently, the ratio modestly improved to 1.10 in 2024 and further to 1.11 in 2025. These increases suggest a gradual strengthening of the company's liquidity position in recent years, enhancing its ability to meet short-term obligations solely through its most liquid assets.
Overall, the trend in Donaldson Company's quick ratio indicates a generally stable liquidity profile, with some dip in 2023 followed by a modest recovery, underscoring the company's consistent capacity to cover its current liabilities with readily available liquid assets.