Donaldson Company Inc (DCI)
Operating return on assets (Operating ROA)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 544,100 | 480,200 | 443,500 | 384,700 | 340,100 |
| Total assets | US$ in thousands | 2,914,300 | 2,770,500 | 2,600,300 | 2,400,200 | 2,244,600 |
| Operating ROA | 18.67% | 17.33% | 17.06% | 16.03% | 15.15% |
July 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $544,100K ÷ $2,914,300K
= 18.67%
The operating return on assets (ROA) for Donaldson Company Inc has shown a consistent upward trend over the past five years, increasing from 15.15% in July 2020 to 18.67% in July 2024. This indicates that the company has been able to generate more operating income relative to its total assets over the years, reflecting improved operational efficiency and profitability.
The steady improvement in operating ROA suggests that Donaldson Company Inc has been effectively utilizing its assets to generate operating profits. This can be a positive indicator of the company's management effectiveness in maximizing returns on its asset base.
Overall, the increasing trend in operating ROA for Donaldson Company Inc underscores the company's ability to generate higher operating income per dollar of assets employed, which is a key metric in evaluating the efficiency of the company's operations and its ability to create value for its shareholders.