Donaldson Company Inc (DCI)
Profitability ratios
Return on sales
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.85% | 35.17% | 35.41% | 35.31% | 35.32% | 34.90% | 34.35% | 34.24% | 33.83% | 33.48% | 33.12% | 32.35% | 32.28% | 32.65% | 33.23% | 33.78% | 34.05% | 33.87% | 33.76% | 33.90% |
| Operating profit margin | 13.42% | 13.44% | 15.03% | 15.12% | 15.17% | 14.69% | 14.34% | 14.16% | 14.00% | 14.21% | 13.92% | 13.42% | 13.41% | 13.36% | 13.69% | 13.60% | 13.48% | 13.16% | 12.89% | 13.30% |
| Pretax margin | 13.34% | 13.22% | 14.83% | 14.91% | 14.93% | 14.54% | 14.11% | 13.85% | 13.66% | 13.95% | 13.74% | 13.29% | 13.26% | 13.29% | 13.65% | 13.53% | 13.35% | 12.91% | 12.56% | 12.99% |
| Net profit margin | 9.94% | 9.94% | 11.51% | 11.56% | 11.54% | 11.22% | 10.82% | 10.60% | 10.46% | 10.69% | 10.45% | 10.11% | 10.07% | 9.91% | 10.24% | 10.14% | 10.05% | 9.88% | 9.59% | 9.97% |
The profitability ratios of Donaldson Company Inc., as reflected in the provided data over multiple periods, indicate a generally stable and gradually improving profitability profile.
Gross Profit Margin:
The gross profit margin has demonstrated a consistent upward trend in recent years, rising from approximately 33.90% as of October 31, 2020, to approximately 35.41% as of January 31, 2025. This indicates that the company has been able to improve its efficiency in managing cost of goods sold relative to sales, leading to higher gross profitability margins.
Operating Profit Margin:
The operating profit margin has shown moderate fluctuations but maintains an overall upward trajectory. It increased from around 13.30% at October 31, 2020, to roughly 15.17% as of July 31, 2024, with some minor declines observable in the last period reported (October 31, 2024: 15.12%). The pattern suggests effective control over operating expenses relative to sales, contributing to improved operational efficiency.
Pretax Margin:
Pretax margin trends mirror the operating margin with gradual improvement, moving from approximately 12.99% at October 31, 2020, to approximately 14.93% at July 31, 2024. Although a slight decline is observed in the subsequent periods (October 2024: 14.91%), the margins remain significantly higher than the 2020 levels, indicating enhanced profitability before tax obligations are considered.
Net Profit Margin:
Net profit margins have paralleled the trends observed in gross, operating, and pretax margins, reflecting better bottom-line performance. The margin increased from approximately 9.97% at October 31, 2020, to about 11.56% as of October 31, 2024. Nonetheless, a decline is noted in the latest periods (January and April 2025: roughly 9.94%), which could be driven by factors such as increased expenses, tax obligations, or other financial considerations impacting net profitability.
Overall Analysis:
The data indicates a positive trajectory in the company's profitability ratios, characterized by improvements in gross margin and operating efficiency over the analyzed timeframe. While recent periods show a slight decline in net profitability, the margins remain substantially improved relative to 2020 levels. These trends suggest effective cost management and operational performance, although the recent dip warrants ongoing attention to expenses and margin sustainability to maintain the upward profitability momentum.
Return on investment
| Jul 31, 2025 | Apr 30, 2025 | Jan 31, 2025 | Oct 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.64% | 16.35% | 18.44% | 18.08% | 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% |
| Return on assets (ROA) | 12.33% | 12.09% | 14.12% | 13.83% | 14.21% | 13.82% | 13.52% | 13.14% | 12.95% | 13.75% | 13.86% | 13.66% | 12.81% | 12.55% | 12.75% | 12.38% | 11.95% | 11.33% | 10.82% | 11.19% |
| Return on total capital | 35.53% | 34.44% | 35.81% | 36.08% | 36.87% | 35.49% | 37.20% | 37.06% | 36.93% | 38.37% | 40.76% | 40.44% | 40.01% | 38.96% | 39.11% | 37.27% | 34.66% | 31.40% | 31.36% | 32.97% |
| Return on equity (ROE) | 25.25% | 24.75% | 27.07% | 27.28% | 27.80% | 26.70% | 27.36% | 27.22% | 27.17% | 28.34% | 29.92% | 29.71% | 29.39% | 28.14% | 28.44% | 27.06% | 25.22% | 23.12% | 22.87% | 24.12% |
The analysis of Donaldson Company Inc.’s profitability ratios over the period from October 2020 to July 2025 reveals a generally positive trend, albeit with some fluctuations.
Operating Return on Assets (Operating ROA) demonstrates a gradual increase, indicating improved efficiency in generating operating income relative to total assets. Starting at approximately 14.92% in October 2020, it steadily ascends to around 18.67% by July 2024, suggesting enhanced operational performance. There is a slight dip projected in the latter period, reaching 16.35% in April 2025 before a modest recovery to 16.64% in July 2025.
Return on Assets (ROA), which accounts for net income in relation to total assets, exhibits a more moderate growth trajectory. Beginning at approximately 11.19% in October 2020, it peaks around 14.21% in July 2024, implying consistent albeit less pronounced improvements in overall profitability after considering all expenses, taxes, and extraordinary items. Toward the end of the forecast period, ROA experiences a dip to around 12.09% in April 2025 before rebounding slightly.
Return on Total Capital illustrates an increasing trend, with values rising from roughly 32.97% in October 2020 to a peak near 40.76% in January 2023. Subsequently, a downward correction is observed, with the ratio declining to approximately 34.44% in April 2025, then improving marginally to 35.53% in July 2025. This indicates that the company has been effective in generating returns on the capital employed, although the decline in the later years may reflect increasing capital costs or strategic shifts.
Return on Equity (ROE) shows a robust upward trend initially, climbing from 24.12% in October 2020 to nearly 29.92% in January 2023. After this peak, a gradual decline is evident, with the figure dropping to 24.75% in April 2025 before a slight recovery. The pattern reflects that shareholder returns have generally improved over time but with some recent softening.
Overall, the profitability ratios suggest that Donaldson Company Inc. has experienced consistent operational improvements over the period, with particular strength in operating efficiency and return on total capital. Although the ratios show some fluctuations and a slight correction in profitability toward late 2024 and early 2025, the overall trend points toward sustained profitability enhancement. This indicates effective management in generating income relative to assets, capital, and equity, with incremental improvements and short-term market or operational adjustments reflected in the ratios.