Donaldson Company Inc (DCI)
Return on assets (ROA)
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 414,000 | 358,800 | 332,800 | 286,900 | 257,000 |
| Total assets | US$ in thousands | 2,914,300 | 2,770,500 | 2,600,300 | 2,400,200 | 2,244,600 |
| ROA | 14.21% | 12.95% | 12.80% | 11.95% | 11.45% |
July 31, 2024 calculation
ROA = Net income ÷ Total assets
= $414,000K ÷ $2,914,300K
= 14.21%
Donaldson Company Inc's Return on Assets (ROA) has shown a generally positive trend over the past five years. The ROA has consistently increased from 11.45% in July 2020 to 14.21% in July 2024. This indicates that the company has been improving its ability to generate profits relative to its total assets.
The rising ROA suggests that Donaldson Company Inc has been effectively utilizing its assets to generate earnings. A higher ROA is generally favorable as it demonstrates the company's efficiency in generating profits per dollar of assets employed.
Overall, the trend of increasing ROA for Donaldson Company Inc indicates improving profitability and efficiency in asset utilization over the years, which can be seen as a positive indicator for the company's financial performance.