Donaldson Company Inc (DCI)
Financial leverage ratio
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,977,200 | 2,914,300 | 2,770,500 | 2,600,300 | 2,400,200 |
| Total stockholders’ equity | US$ in thousands | 1,453,500 | 1,489,100 | 1,320,700 | 1,133,200 | 1,137,100 |
| Financial leverage ratio | 2.05 | 1.96 | 2.10 | 2.29 | 2.11 |
July 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,977,200K ÷ $1,453,500K
= 2.05
The financial leverage ratio of Donaldson Company Inc. has exhibited fluctuations over the analyzed period from July 31, 2021, to July 31, 2025. Specifically, the ratio was 2.11 in the fiscal year ending July 31, 2021, indicating that for every dollar of equity, the company employed approximately $2.11 in total assets financed through debt. This ratio increased to 2.29 by July 31, 2022, suggesting a slight amplification in the company's reliance on borrowed funds relative to equity.
Subsequently, a decline in the leverage ratio to 2.10 was observed by July 31, 2023. This decrease implies a modest reduction in leverage, potentially reflecting a strategic shift towards reducing debt levels or an increase in equity financing. The ratio further declined to 1.96 by July 31, 2024, reaching its lowest point within the period. This decline may indicate continued deleveraging or a reassessment of capital structure to reduce financial risk.
By July 31, 2025, the ratio experienced a slight rebound to 2.05, denoting a minor increase in leverage relative to the previous year but still remaining below the 2022 peak. Overall, the trend demonstrates a pattern of moderate fluctuation in leverage, with the company maintaining a levered financial position typically in the range of approximately 2.0 to 2.3. This suggests a balanced approach to leveraging, with periods of slight deleveraging and leverage increases aligned with operational or strategic considerations.