Donaldson Company Inc (DCI)

Financial leverage ratio

		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
Total assets	US$ in thousands	2,977,200	2,996,500	2,961,300	3,043,600	2,914,300	2,866,100	2,783,500	2,768,600	2,770,500	2,675,500	2,578,600	2,512,000	2,600,300	2,519,200	2,491,300	2,438,500	2,400,200	2,354,600	2,271,100	2,269,400
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
Financial leverage ratio		2.05	2.05	1.92	1.97	1.96	1.93	2.02	2.07	2.10	2.06	2.16	2.18	2.29	2.24	2.23	2.19	2.11	2.04	2.11	2.16

July 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,977,200K ÷ $1,453,500K
= 2.05

The analysis of Donaldson Company Inc.'s financial leverage ratio over the specified period reveals notable trends and stability in its leverage position. The financial leverage ratio, which measures the extent to which the company utilizes debt to finance its assets relative to equity, fluctuated within a relatively narrow range from October 2020 through October 2025.

At the start of the period, in October 2020, the ratio was 2.16, indicating that the company's total assets were financed approximately 2.16 times by debt relative to equity. Throughout the subsequent periods, the ratio exhibited minor fluctuations, reaching a low of approximately 1.92 in January 2024, and a high of about 2.29 in July 2022. These shifts suggest a moderate variation in the company's degree of leverage, with no extreme increases or decreases.

The general trend indicates periods of slight decreases and increases, with the ratio gradually declining from its peak in mid-2022. Recently, by October 2024, the ratio decreased to near 1.97, close to the initial levels observed in late 2020. This reduction implies a modest deleveraging process, potentially reflecting endeavors to lower debt levels or strengthen equity financing.

Overall, the company's financial leverage ratio has remained relatively stable across the analyzed timeframe, indicating a consistent approach to leveraging assets. The ratios consistently hover around the 2.0 level, implying that the company maintains a balanced use of debt in its capital structure, without significant escalation or reduction in leverage. This stability may suggest effective management of financial risk and a strategic approach to financing operations through a mix of debt and equity.