Donaldson Company Inc (DCI)
Return on assets (ROA)
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 367,000 | 414,000 | 358,800 | 332,800 | 286,900 |
| Total assets | US$ in thousands | 2,977,200 | 2,914,300 | 2,770,500 | 2,600,300 | 2,400,200 |
| ROA | 12.33% | 14.21% | 12.95% | 12.80% | 11.95% |
July 31, 2025 calculation
ROA = Net income ÷ Total assets
= $367,000K ÷ $2,977,200K
= 12.33%
The analysis of Donaldson Company Inc.'s Return on Assets (ROA) over the period from July 31, 2021, to July 31, 2025, reveals a generally positive trend with some fluctuations. In July 2021, the ROA was reported at 11.95%, indicating the company's ability to generate earnings relative to its total assets at that time. This figure modestly increased to 12.80% by July 2022, reflecting an improvement in asset efficiency and profitability.
The upward trajectory continued into July 2023, with the ROA reaching 12.95%, suggesting sustained or slightly improved operational effectiveness. The most notable rise occurred by July 2024, where the ROA climbed to 14.21%. This spike signifies a period of enhanced asset utilization or increased profitability relative to total assets, positioning Donaldson Company inc. in a more efficient state of asset management.
However, by July 2025, the ROA declined to 12.33%. While still higher than the levels observed in 2021, this decrease indicates a moderation in the company's efficiency or profitability, possibly due to operational, market, or strategic factors impacting the company's ability to convert assets into earnings efficiently.
Overall, the ROA trend illustrates a generally favorable movement over these years, with a significant peak in 2024 followed by a slight contraction in 2025. The pattern suggests that Donaldson Company Inc. experienced periods of improved asset efficiency, culminating in the mid-period peak, followed by a normalization phase. This trajectory emphasizes the importance of monitoring operational efficiencies and strategic initiatives that influence asset profitability in subsequent periods.