Donaldson Company Inc (DCI)
Gross profit margin
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,274,400 | 1,160,600 | 1,067,400 | 971,700 | 871,600 |
| Revenue | US$ in thousands | 3,586,300 | 3,430,800 | 3,306,600 | 2,853,900 | 2,581,800 |
| Gross profit margin | 35.54% | 33.83% | 32.28% | 34.05% | 33.76% |
July 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,274,400K ÷ $3,586,300K
= 35.54%
From the data provided, Donaldson Company Inc's gross profit margin has shown a fluctuating trend over the past five years. The gross profit margin increased from 33.76% in July 2020 to 34.05% in July 2021, before slightly declining to 32.28% in July 2022. However, in the most recent period of July 2024, the gross profit margin has improved to 35.54%.
The increase in the gross profit margin in July 2024 compared to the prior years signifies an improvement in the company's ability to generate profits from its sales after accounting for the cost of goods sold. A higher gross profit margin indicates that Donaldson Company Inc is effectively managing its production costs and pricing strategies, resulting in a larger percentage of revenue retained as gross profit.
Overall, the trend of increasing gross profit margins in recent years suggests potential operational efficiency and effectiveness in managing costs, which can have a positive impact on the company's profitability and financial performance. However, further analysis of the underlying factors contributing to these changes would be necessary to fully understand the dynamics driving the fluctuations in the gross profit margin over time.