Donaldson Company Inc (DCI)
Debt-to-capital ratio
| Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,489,100 | 1,320,700 | 1,133,200 | 1,137,100 | 992,900 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
July 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,489,100K)
= 0.00
The debt-to-capital ratio for Donaldson Company Inc has consistently been 0.00 for the past five years, including from July 31, 2020, to July 31, 2024. This indicates that the company has not utilized debt as a source of capital during this period. A debt-to-capital ratio of 0.00 signifies that the company's capital structure is primarily equity-financed rather than debt-financed. This may suggest a conservative financial strategy, as the company is not relying on debt to fund its operations or growth and may indicate a lower financial risk compared to companies with higher debt levels. It is important to note that while a low debt-to-capital ratio can be favorable in terms of financial risk and stability, it may also limit the company's ability to leverage debt for potential growth opportunities or tax benefits.