Donaldson Company Inc (DCI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 2.26 | 2.48 | 2.41 | 2.49 |
Based on the solvency ratios for Donaldson Company Inc provided in the table, it can be observed that the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been at 0.00 across all the reporting periods. This indicates that the company has not utilized any debt in its capital structure, relying solely on equity financing.
However, the financial leverage ratio has fluctuated over time, ranging from 1.93 to 2.49. The financial leverage ratio measures the proportion of a company's assets that are financed with debt rather than equity. The increasing trend in the financial leverage ratio indicates that Donaldson Company Inc has been relying more on debt to finance its operations, which could pose a risk in terms of financial stability and ability to meet debt obligations.
Overall, while the company has maintained a debt-free capital structure, the increasing financial leverage ratio suggests a shift towards using debt to fund its operations, which may need to be carefully monitored to ensure financial health and solvency in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a financial ratio that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio signifies a stronger ability to meet interest payments.
Based on the data provided for Donaldson Company Inc, we observe that the interest coverage ratio has been consistently high over the period from October 2019 to July 2024. The interest coverage ratio has ranged from a low of 18.91 to a high of 32.84, indicating that the company has had a strong ability to cover its interest expenses with its operating income.
The trend shows a relatively stable and healthy interest coverage ratio, with some fluctuations, but overall maintaining a robust level above 20. This consistent performance suggests that Donaldson Company Inc has been effectively managing its interest expenses and generating sufficient operating income to cover these costs.
In conclusion, the interest coverage ratio for Donaldson Company Inc reflects a solid financial position and suggests that the company is in a good position to meet its debt obligations and interest payments.