Donaldson Company Inc (DCI)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 180,400 | 178,500 | 189,100 | 221,200 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,100 | — |
| Receivables | US$ in thousands | 662,200 | 665,600 | 597,600 | 631,300 | 629,700 | 653,200 | 610,500 | 582,500 | 599,700 | 626,300 | 574,500 | 584,200 | 616,600 | 585,500 | 553,400 | 545,100 | 552,700 | 541,300 | 492,900 | 465,100 |
| 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 |
| Quick ratio | 1.11 | 1.11 | 1.03 | 1.06 | 1.10 | 1.19 | 0.90 | 0.91 | 1.04 | 1.14 | 1.30 | 1.31 | 1.29 | 1.24 | 1.13 | 1.28 | 1.28 | 1.38 | 1.40 | 1.75 |
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 declining trend over the observed period from October 31, 2020, through July 31, 2025. At the end of October 2020, the ratio stood at 1.75, indicating a robust liquidity position where the company's most liquid assets comfortably covered current liabilities. Over the subsequent periods, this ratio experienced a gradual decrease, reflecting a reduction in the company's liquidity cushion.
By October 31, 2021, the ratio had declined to 1.28, marking a notable decrease from the initial period. This downward trend continued, reaching approximately 1.13 in January 2022, and then fluctuated slightly above 1.2 during 2022, peaking at 1.29 on July 31, 2022, before slightly increasing again to 1.31 in October 2022.
Starting in late 2022, the ratio exhibited a steady downward movement, falling below 1.20 and eventually dropping to 1.04 on July 31, 2023. This decline persisted into October 2023, where the ratio further decreased to 0.91, indicating that the company's quick assets no longer fully cover its current liabilities.
From October 2023 onward, minor fluctuations occurred, with the ratio moving marginally above 1.0, reaching 1.19 in April 2024, then decreasing again to around 1.10 by July 2024, and slightly below 1.0 at 1.06 on October 31, 2024. The ratio maintained near this level during early 2025, with slight increases to 1.03 in January 2025 and up to approximately 1.11 in April and July 2025.
Overall, the trend indicates a weakening liquidity position over the analyzed period, with the quick ratio declining from a comfortable over 1.7 to just above or near 1.0, reflecting potential increases in current liabilities or decreases in liquid assets. Although the ratio remained above 1.0 for most of the period, the proximity to or fall below this threshold in the more recent periods may signal heightened liquidity concerns, warranting further analysis of the composition of quick assets and current liabilities.