Donaldson Company Inc (DCI)
Interest coverage
| 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 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 558,200 | 534,200 | 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 | 352,600 | 371,300 | 387,200 | 385,700 |
| Interest expense (ttm) | US$ in thousands | 21,400 | 21,000 | 21,100 | 20,100 | 19,100 | 18,300 | 17,000 | 16,000 | 14,900 | 13,900 | 13,300 | 13,000 | 13,100 | 13,900 | 15,100 | 16,300 | 17,500 | 18,800 | 19,600 | 20,400 |
| Interest coverage | 26.08 | 25.44 | 24.26 | 24.63 | 25.54 | 27.23 | 28.64 | 29.19 | 30.43 | 31.50 | 32.84 | 31.99 | 30.08 | 26.06 | 22.31 | 21.29 | 20.15 | 19.75 | 19.76 | 18.91 |
July 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $558,200K ÷ $21,400K
= 26.08
The interest coverage ratio of Donaldson Company Inc has shown a generally positive trend over the past two years, indicating the company's ability to meet its interest obligations from its operating earnings. The ratio has consistently remained above 20, reflecting a strong ability to cover interest expenses. The ratio peaked at 32.84 in the first quarter of 2022 and has since stabilized at levels above 25. This demonstrates a solid financial position and suggests that the company has sufficient earnings to comfortably cover its interest payments. Investors and creditors may view this as a positive sign of financial health and stability within the company.