Donaldson Company Inc (DCI)
Operating return on assets (Operating ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 557,400 | 544,100 | 480,200 | 443,500 | 384,700 |
| Total assets | US$ in thousands | 2,977,200 | 2,914,300 | 2,770,500 | 2,600,300 | 2,400,200 |
| Operating ROA | 18.72% | 18.67% | 17.33% | 17.06% | 16.03% |
July 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $557,400K ÷ $2,977,200K
= 18.72%
The analysis of Donaldson Company Inc.'s operating return on assets (ROA) over the period from July 31, 2021, to July 31, 2025, reveals a consistent upward trajectory in the company's operational efficiency relative to its total assets. Starting with an operating ROA of 16.03% in July 2021, the metric exhibited a steady incremental increase, reaching 17.06% by July 2022, indicating improved operational performance and asset utilization. This positive trend persisted into July 2023, with the operating ROA rising marginally to 17.33%. The growth continued more markedly into the subsequent years, with the figure reaching 18.67% in July 2024, and continuing its upward movement to 18.72% by July 2025.
The observed progression suggests that Donaldson Company Inc. has been increasingly effective in generating operating income relative to its asset base over the analyzed period. The gradual yet consistent rise in operating ROA points towards improved operational efficiencies, potentially arising from better management practices, optimized asset deployment, or successful product and service strategies. Additionally, the increase in this ratio signifies a strengthening of the company's ability to convert its assets into operating income, which could positively impact profitability and long-term value creation for shareholders.
Overall, the trend in Donaldson Company's operating ROA indicates a favorable development in operational performance, characterized by incremental enhancements in asset utilization efficiency, with the potential to contribute to sustained financial health and competitive positioning.