Donaldson Company Inc (DCI)
Profitability ratios
Return on sales
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.54% | 33.83% | 32.28% | 34.05% | 33.76% |
| Operating profit margin | 15.17% | 14.00% | 13.41% | 13.48% | 13.17% |
| Pretax margin | 14.93% | 13.66% | 13.26% | 13.35% | 12.98% |
| Net profit margin | 11.54% | 10.46% | 10.06% | 10.05% | 9.95% |
Donaldson Company Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has been increasing steadily, reaching 35.54% in Jul 31, 2024, indicating the company's ability to control its production costs and generate more profit from each dollar of sales.
The operating profit margin has also seen a continuous upward trend, reaching 15.17% in Jul 31, 2024. This suggests that the company is effectively managing its operating expenses and is becoming more efficient in its core business operations.
Similarly, the pretax margin and net profit margin have shown improvement year over year, with the net profit margin reaching 11.54% in Jul 31, 2024. This indicates that Donaldson Company Inc is maintaining a healthy level of profitability after accounting for all expenses and taxes.
Overall, the increasing trend in profitability ratios reflects the company's strong financial performance and effective management of costs, leading to higher profitability for its stakeholders.
Return on investment
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.67% | 17.33% | 17.06% | 16.03% | 15.15% |
| Return on assets (ROA) | 14.21% | 12.95% | 12.80% | 11.95% | 11.45% |
| Return on total capital | 36.54% | 36.94% | 40.00% | 34.65% | 35.51% |
| Return on equity (ROE) | 27.80% | 27.17% | 29.37% | 25.23% | 25.88% |
Donaldson Company Inc's profitability ratios have shown a positive trend over the past five years, indicating strong operational efficiency and effectiveness in generating profits relative to its assets and capital.
The Operating return on assets (Operating ROA) has been steadily increasing from 15.15% in 2020 to 18.67% in 2024, demonstrating the company's ability to generate profits from its operating activities efficiently.
Return on assets (ROA) has also shown improvement over the period, starting at 11.45% in 2020 and reaching 14.21% in 2024. This ratio reflects the company's profitability in relation to its total assets, with higher percentages indicating better asset utilization.
Return on total capital peaked at 40.00% in 2022, showing the company's ability to generate profits from all of its capital sources. Although there was a slight decrease in 2024, the ratio remains relatively high at 36.54%, reflecting strong returns.
Return on equity (ROE) has been consistently above 25% over the years, demonstrating the company's ability to generate returns for its shareholders. The ratio increased from 25.88% in 2020 to 27.80% in 2024, reflecting efficient utilization of equity capital to generate profits.
Overall, Donaldson Company Inc's profitability ratios indicate strong operational performance and effective management of assets and capital, showcasing the company's ability to generate profits for its stakeholders.