Donaldson Company Inc (DCI)
Operating return on assets (Operating ROA)
| Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 544,100 | 518,500 | 498,900 | 485,500 | 480,200 | 488,900 | 475,900 | 455,300 | 443,500 | 426,200 | 424,600 | 405,000 | 384,700 | 355,200 | 330,300 | 338,700 | 340,200 | 362,100 | 377,600 | 378,200 |
| Total assets | US$ in thousands | 2,914,300 | 2,866,100 | 2,783,500 | 2,768,600 | 2,770,500 | 2,675,500 | 2,578,600 | 2,512,000 | 2,600,300 | 2,519,200 | 2,491,300 | 2,438,500 | 2,400,200 | 2,354,600 | 2,271,100 | 2,269,400 | 2,244,600 | 2,338,500 | 2,262,200 | 2,283,300 |
| Operating ROA | 18.67% | 18.09% | 17.92% | 17.54% | 17.33% | 18.27% | 18.46% | 18.12% | 17.06% | 16.92% | 17.04% | 16.61% | 16.03% | 15.09% | 14.54% | 14.92% | 15.16% | 15.48% | 16.69% | 16.56% |
July 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $544,100K ÷ $2,914,300K
= 18.67%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. Donaldson Company Inc's operating ROA has shown fluctuation over the past few years, ranging from a low of 14.54% in January 2021 to a high of 18.67% in July 2024.
The increasing trend in operating ROA from January 2021 to July 2024 indicates an improvement in the company's efficiency in using its assets to generate operating income. This suggests that Donaldson Company Inc has been able to increase its profitability relative to its asset base over this period.
However, it is important to note the slight decrease in operating ROA in the most recent quarter (April 2024 to July 2024). This decline may signify a potential slowdown in the company's ability to generate profits from its operations relative to its assets.
Overall, Donaldson Company Inc's operating ROA performance demonstrates a generally positive trend with some fluctuations. It is crucial for the company to continue monitoring and improving this ratio to ensure efficient asset utilization and sustainable profitability.