Donaldson Company Inc (DCI)
Gross profit margin
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,286,200 | 1,274,400 | 1,160,600 | 1,067,400 | 971,700 |
| Revenue | US$ in thousands | 3,690,900 | 3,586,300 | 3,430,800 | 3,306,600 | 2,853,900 |
| Gross profit margin | 34.85% | 35.54% | 33.83% | 32.28% | 34.05% |
July 31, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,286,200K ÷ $3,690,900K
= 34.85%
The gross profit margin of Donaldson Company Inc. demonstrates a pattern of fluctuation over the analyzed period from July 31, 2021, to July 31, 2025. Starting at 34.05% in 2021, the margin experienced a decline to 32.28% by 2022, indicating a reduction in gross profitability relative to sales, which could suggest increased cost pressures or pricing challenges during that interval. However, from 2022 to 2023, the gross profit margin increased substantially to 33.83%, reflecting an improvement in gross profitability. This uptick suggests that the company may have successfully managed cost of goods sold or increased selling prices during this period.
Further analysis shows a positive trend continuing into 2024, where the gross profit margin rose to 35.54%, representing the highest value within the observed timeframe. This indicates a strong improvement in gross profitability, potentially driven by effective cost controls or favorable product mix adjustments. Slightly declining to 34.85% in 2025, the margin remains well above the 2022 low point, maintaining overall positive momentum.
In summary, over the observed four-year span, Donaldson Company's gross profit margin exhibited initial volatility with a notable dip in 2022, followed by a consistent and meaningful recovery leading into 2024. The overall trend suggests an enhancement in gross profitability, reflecting improved operational efficiency, pricing strategies, or product mix, although the margin slightly declined again in 2025.