Donaldson Company Inc (DCI)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 367,000 | 362,400 | 418,100 | 420,900 | 414,000 | 396,200 | 376,400 | 363,700 | 358,800 | 368,000 | 357,300 | 343,100 | 333,000 | 316,200 | 317,600 | 302,000 | 286,800 | 266,700 | 245,700 | 253,900 |
| Total stockholders’ equity | US$ in thousands | 1,453,500 | 1,464,200 | 1,544,400 | 1,543,000 | 1,489,100 | 1,484,000 | 1,375,800 | 1,336,100 | 1,320,700 | 1,298,700 | 1,194,200 | 1,154,800 | 1,133,200 | 1,123,600 | 1,116,800 | 1,115,900 | 1,137,100 | 1,153,400 | 1,074,400 | 1,052,600 |
| 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% |
July 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $367,000K ÷ $1,453,500K
= 25.25%
The analysis of Donaldson Company Inc.'s return on equity (ROE) over the specified period indicates a generally positive trend, reflecting consistent profitability relative to shareholders' equity. Starting from a ROE of approximately 24.12% on October 31, 2020, the company's ROE experienced a gradual increase, reaching a peak of about 29.92% on January 31, 2023. This upward trajectory suggests improvements in operational efficiency, profit margins, or both, contributing to enhanced profitability for shareholders.
Between 2020 and early 2023, the ROE demonstrated a steady rise with only minor fluctuations, illustrating resilience and successful execution of strategic initiatives. The peak in early 2023 aligns with periods of potentially favorable market conditions or internal efficiencies. Following this peak, the ROE displayed slight declines, with figures around 28.34% in April 2023 and dropping further to approximately 27.17% in July 2023, before stabilizing close to 27.22% by October 2023. These modest reductions may reflect increased investment or expenses, temporary operational challenges, or shifts in profitability yet maintaining a relatively high level of return.
Extended into 2024 and early 2025, the ROE exhibited minor fluctuations within a narrow range, staying roughly between 24.75% and 27.80%. Notably, there is a slight downward trend in 2024 with the ROE reaching as low as 24.75% in April 2025 before marginally rising again. This trend indicates periods of stability with some potential compression in returns, possibly due to increased capital expenditure, competitive pressures, or cyclical industry factors.
Overall, Donaldson Company's ROE performance underscores a period of solid profitability and capital efficiency with sustained value generation for shareholders. The fluctuations, while noteworthy, remain within a relatively narrow band, suggesting operational stability with some influence from external or internal strategic adjustments.