Donaldson Company Inc (DCI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 516,400 | 504,300 | 553,000 | 556,700 | 549,100 | 526,600 | 511,800 | 495,100 | 487,800 | 498,300 | 486,800 | 467,000 | 453,400 | 437,800 | 436,800 | 415,900 | 394,100 | 362,200 | 336,900 | 347,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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% |
July 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $516,400K ÷ ($—K + $1,453,500K)
= 35.53%
The analysis of Donaldson Company Inc.'s return on total capital over the specified period reveals a pattern of relative stability with some fluctuations. Starting from October 31, 2020, at approximately 32.97%, the ratio experienced a gradual increase through the subsequent quarters, reaching a peak of around 40.76% on January 31, 2023. This upward trend indicates improved efficiency in generating returns from the company's total capital during this timeframe.
Post-peak, the ratio demonstrates a modest decline, declining to approximately 36.93% by July 31, 2023, and further to around 36.08% at October 31, 2024. The ratio continues to fluctuate slightly in subsequent periods, with values such as 35.81% on January 31, 2025, and 34.44% on April 30, 2025, suggesting some compression in the returns on total capital in the later quarters.
Overall, Donaldson Company's return on total capital shows a consistent ability to generate solid returns, generally maintaining levels above 35% after the initial growth phase. The observed fluctuations may reflect variations in operational performance, capital allocation strategies, or macroeconomic influences, but the ratio remains within a relatively narrow band, indicating a stable and potentially efficient use of total capital over time.