Donaldson Company Inc (DCI)

Donaldson Company Inc's solvency ratios show a consistent trend of having a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 across the past five years, indicating the company has not been heavily reliant on debt to finance its operations. This suggests a strong financial position and lower risk of financial distress due to debt obligations.

However, the financial leverage ratio has shown some fluctuation over the same period, ranging from 1.96 to 2.29. This ratio measures the extent to which the company is using debt to finance its assets, with a higher ratio indicating higher financial leverage. While the ratios are relatively low, the fluctuations may indicate changes in the capital structure or borrowing practices of the company.

Overall, the consistent low debt ratios suggest that Donaldson Company Inc has maintained a conservative approach to managing its debt levels, which can contribute to financial stability and resilience in the face of economic uncertainties.

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Coverage ratios

The interest coverage ratio of Donaldson Company Inc has remained relatively stable and strong over the past five years, ranging from 20.26 to 30.42. This indicates that the company's operating income is consistently sufficient to cover its interest expenses by a significant margin. A higher interest coverage ratio suggests that the company is at lower risk of defaulting on its debt obligations, as it has more earnings available to cover its interest payments. Overall, the trend in the interest coverage ratio reflects the company's ability to generate enough profits to comfortably meet its interest obligations, reflecting positively on its financial health and stability.