DONALDSON Co INC
For the period ended Apr 30, 2024. Filed Jun 4, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2024 · Filed Jun 4, 2024
DCI$84.33+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-01-31; filed 2024-03-04.
0000029644-24-000027
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-04-30; filed 2024-06-04.
0000029644-24-000067
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 103 previous paragraphs and 103 current paragraphs.
61 unchanged; 33 reworded; 9 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Net earnings for the nine months ended April 30, 2024 were $304.3 million, compared with $266.9 million for the nine months ended April 30, 2023, an increase of $37.4 million, or 14.0%. Diluted EPS were $2.48 for the nine months ended April 30, 2024, compared with $2.16 for the nine months ended April 30, 2023, an increase of $0.32, or 15.0%.
Current report
Net sales for the Mobile Solutions segment for the three months ended April 30, 2024 were $585.2 million, compared with $555.0 million for the three months ended April 30, 2023, an increase of $30.2 million, or 5.5%. Excluding a $4.6 million decrease from foreign currency translation, net sales for the Mobile Solutions segment increased 6.3%. All business units were negatively impacted by foreign currency translation.
Current report
Net sales for the Mobile Solutions segment for the nine months ended April 30, 2024 were $1,675.5 million, compared with $1,632.3 million for the nine months ended April 30, 2023, an increase of $43.2 million, or 2.6%. Excluding a $5.1 million increase from foreign currency translation, net sales for the Mobile Solutions segment increased 2.3%. Off-Road and Aftermarket business units were positively impacted by foreign currency translation.
Current report
Earnings before income taxes for the Mobile Solutions segment for the nine months ended April 30, 2024 were $299.3 million, or 17.9% of net sales, an increase from 14.8% of net sales for the nine months ended April 30, 2023. The increase was driven by higher volume, favorable product mix and pricing actions.
Current report
Net sales for the Industrial Solutions segment for the three months ended April 30, 2024 were $269.1 million, compared with $261.5 million for the three months ended April 30, 2023, an increase of $7.6 million, or 2.9%. Excluding a $1.1 million decrease from foreign currency translation, net sales for the Industrial Solutions segment increased 3.3%. IFS was negatively impacted by foreign currency translation.
Current report
Net sales for the Industrial Solutions segment for the nine months ended April 30, 2024 were $778.7 million, compared with $737.6 million for the nine months ended April 30, 2023, an increase of $41.1 million, or 5.6%. Excluding a $4.2 million increase from foreign currency translation, net sales for the Industrial Solutions segment increased 5.0%. Both business units were positively impacted by foreign currency translation.
Current report
Earnings before income taxes for the Industrial Solutions segment for the nine months ended April 30, 2024 were $141.0 million, or 18.1% of net sales, an increase from 18.0% of net sales for the nine months ended April 30, 2023.
Current report
Net sales for the Life Sciences segment for the three months ended April 30, 2024 were $73.6 million, compared with $59.2 million for the three months ended April 30, 2023, an increase of $14.4 million, or 24.2%. Excluding a $1.4 million decrease from foreign currency translation, net sales for the Life Sciences segment increased 26.5%. The increase was driven by timing of Bioprocessing Equipment sales and strong market demand in Disk Drive.
Current report
Net sales for the Life Sciences segment for the nine months ended April 30, 2024 were $196.7 million, compared with $181.4 million for the nine months ended April 30, 2023, an increase of $15.3 million, or 8.4%. Excluding a $0.8 million increase from foreign currency translation, net sales for the Life Sciences segment increased 8.0%. The increase was driven by timing of Bioprocessing Equipment sales and strong market demand in disk drive.
Removed paragraphs (9)
Previous report
Net earnings for the three months ended January 31, 2024 were $98.7 million, compared with $86.0 million for the three months ended January 31, 2023, an increase of $12.7 million, or 14.8%. Diluted EPS were $0.81 for the three months ended January 31, 2024, compared with $0.70 for the three months ended January 31, 2023, an increase of $0.11, or 15.9%.
Previous report
Net sales for the Mobile Solutions segment for the three months ended January 31, 2024 were $550.3 million, compared with $522.5 million for the three months ended January 31, 2023, an increase of $27.8 million, or 5.3%. Excluding a $2.7 million increase from foreign currency translation, net sales for the Mobile Solutions segment increased 4.8%.
Previous report
Net sales for the Mobile Solutions segment for the six months ended January 31, 2024 were $1,090.3 million, compared with $1,077.4 million for the six months ended January 31, 2023, an increase of $12.9 million, or 1.2%. Excluding a $9.7 million increase from foreign currency translation, net sales for the Mobile Solutions segment increased 0.3%. All business units were positively impacted by foreign currency translation.
Previous report
Earnings before income taxes for the Mobile Solutions segment for the six months ended January 31, 2024 were $191.4 million, or 17.6% of net sales, an increase from 14.7% of net sales for the six months ended January 31, 2023. The increase was driven by favorable product mix, pricing actions and lower input costs, partially offset by higher labor and overhead costs.
Previous report
Net sales for the Industrial Solutions segment for the three months ended January 31, 2024 were $263.4 million, compared with $246.4 million for the three months ended January 31, 2023, an increase of $17.0 million, or 6.9%. Excluding a $1.6 million increase from foreign currency translation, net sales for the Industrial Solutions segment increased 6.2%. Both business units were positively impacted by foreign currency translation.
Previous report
Net sales for the Industrial Solutions segment for the six months ended January 31, 2024 were $509.6 million, compared with $476.0 million for the six months ended January 31, 2023, an increase of $33.6 million, or 7.0%. Excluding a $5.3 million increase from foreign currency translation, net sales for the Industrial Solutions segment increased 5.9%. Both business units were positively impacted by foreign currency translation.
Previous report
Earnings before income taxes for the Industrial Solutions segment for the six months ended January 31, 2024 were $90.7 million, or 17.8% of net sales, an increase from 17.6% of net sales for the six months ended January 31, 2023. The increase was primarily due to the impact from leveraging operating expenses, operational efficiencies and lower freight costs, partially offset by unfavorable product mix.
Previous report
Net sales for the Life Sciences segment for the three months ended January 31, 2024 were $63.0 million, compared with $59.4 million for the three months ended January 31, 2023, an increase of $3.6 million, or 6.0%. Excluding a $0.5 million increase from foreign currency translation, net sales for the Life Sciences segment increased 5.1%. The increase was primarily driven by a recovery in market demand for products in the disk drive business.
Previous report
Net sales for the Life Sciences segment for the six months ended January 31, 2024 were $123.1 million, compared with $122.2 million for the six months ended January 31, 2023, an increase of $0.9 million, or 0.8%. Excluding a $2.2 million increase from foreign currency translation, net sales for the Life Sciences segment declined 1.0%.
Reworded paragraphs (33)
Previous wording
Net sales for the three months ended January 31, 2024 increased $48.4 million, or 5.8%, from the three months ended January 31, 2023, reflecting higher sales in the Mobile Solutions segment of $27.8 million, or 5.3% growth, the Industrial Solutions segment of $17.0 million, or 6.9%, growth and the Life Sciences segment of $3.6 million, or 6.0% growth. Foreign currency translation increased net sales by $4.8 million compared to the three months ended January 31, 2023, reflecting increases in the Mobile Solutions, Industrial Solutions and Life Sciences segments of $2.7 million, $1.6 million and $0.5 million, respectively. During the three months ended January 31, 2024, the Company’s net sales increase was driven primarily by volume increases and higher pricing.
Current wording
Net sales for the three months ended April 30, 2024 increased $52.2 million, or 6.0%, from the three months ended April 30, 2023, reflecting higher sales in the Mobile Solutions segment of $30.2 million, or 5.5% growth, the Life Sciences segment of $14.4 million, or 24.2% growth and the Industrial Solutions segment of $7.6 million, or 2.9% growth. Foreign currency translation decreased net sales by $7.1 million compared to the three months ended April 30, 2023, reflecting decreases in the Mobile Solutions, Industrial Solutions and Life Sciences segments of $4.6 million, $1.1 million and $1.4 million, respectively. During the three months ended April 30, 2024, the Company’s net sales increase was driven primarily by volume increases due to strong underlying market growth and higher pricing.
Previous wording
Gross margin as a percentage of net sales for the six months ended January 31, 2024 was 35.4% compared with 34.1% for the six months ended January 31, 2023. The increase in gross margin as a percentage of net sales was primarily driven by pricing benefits and lower freight and certain material costs.
Current wording
Gross margin as a percentage of net sales for the three months ended April 30, 2024 was 35.6% compared with 33.0% for the three months ended April 30, 2023. The increase in gross margin as a percentage of net sales was primarily driven by leverage on higher sales, pricing actions and input cost deflation.
Previous wording
Selling, general and administrative expenses for the six months ended January 31, 2024 were $311.8 million, or 18.1% of net sales, compared with $298.8 million, or 17.8% of net sales, for the six months ended January 31, 2023, an increase of $13.0 million, or 4.4%. The increase in selling, general and administrative expenses as a percentage of net sales was primarily due to increased headcount and incremental expenses associated with investments in acquired Life Sciences businesses.
Current wording
Selling, general and administrative expenses for the three months ended April 30, 2024 were $161.7 million, or 17.4% of net sales, compared with $145.8 million, or 16.7% of net sales, for the three months ended April 30, 2023, an increase of $15.9 million, or 10.9%. The increase in selling, general and administrative expenses as a percentage of net sales was primarily due to increased headcount and incremental expenses associated with investments in acquired Life Sciences businesses.
Previous wording
Research and development expenses for the three months ended January 31, 2024 were $22.1 million, or 2.5% of net sales, compared with $18.5 million, or 2.2% of net sales, for the three months ended January 31, 2023, primarily due to increased headcount.
Current wording
Research and development expenses for the three months ended April 30, 2024 were $24.8 million, or 2.7% of net sales, compared with $19.0 million, or 2.2% of net sales, for the three months ended April 30, 2023, primarily due to increased headcount and incremental expenses associated with investments in acquired Life Sciences businesses.
Previous wording
Interest expense for the six months ended January 31, 2024 was $11.1 million, compared with $9.2 million for the six months ended January 31, 2023, an increase of $1.9 million, or 20.5%. The increase reflected rising variable interest rates.
Current wording
Interest expense for the three months ended April 30, 2024 was $5.0 million, compared with $5.1 million for the three months ended April 30, 2023, a decrease of $0.1 million, or 2.1%, which was primarily due to lower debt levels, offset by rising variable interest rates.
Previous wording
Other income, net for the six months ended January 31, 2024 was $8.7 million, compared with other income, net of $3.4 million for the six months ended January 31, 2023, an increase of $5.3 million, which was driven primarily by increases in earnings from joint ventures and lower foreign currency losses.
Current wording
Other income, net for the three months ended April 30, 2024 was $5.4 million, compared with other income, net of $2.6 million for the three months ended April 30, 2023, an increase of $2.8 million, which was driven primarily by foreign currency related gains in the current period compared to foreign currency related losses in the prior year.
Previous wording
The effective tax rate was 23.5% and 24.1% for the three months ended January 31, 2024 and 2023, respectively. The decrease in the effective tax rate was primarily due to a favorable shift in the mix of global earnings and increased foreign tax credit benefits.
Current wording
The effective tax rate was 21.2% and 22.9% for the three months ended April 30, 2024 and 2023, respectively. The lower effective tax rate was primarily due to an increase in excess tax benefits on stock-based compensation.
Previous wording
Net earnings for the six months ended January 31, 2024 were $190.8 million, compared with $173.2 million for the six months ended January 31, 2023, an increase of $17.6 million, or 10.2%. Diluted EPS were $1.56 for the six months ended January 31, 2024, compared with $1.40 for the six months ended January 31, 2023, an increase of $0.16, or 11.4%.
Current wording
Net earnings for the three months ended April 30, 2024 were $113.5 million, compared with $93.7 million for the three months ended April 30, 2023, an increase of $19.8 million, or 21.1%. Diluted EPS were $0.92 for the three months ended April 30, 2024, compared with $0.76 for the three months ended April 30, 2023, an increase of $0.16, or 21.7%.
Previous wording
Net sales for the six months ended January 31, 2024 increased $47.4 million, or 2.8%, from the six months ended January 31, 2023, reflecting higher sales in the Industrial Solutions segment of $33.6 million, or 7.0% growth, the Mobile Solutions segment of $12.9 million, or 1.2% growth, and the Life Sciences segment of $0.9 million, or a 0.8% growth. Foreign currency translation increased net sales by $17.2 million compared to the six months ended January 31, 2023, reflecting increases in the Mobile Solutions, Industrial Solutions and Life Sciences segments of $9.7 million, $5.3 million and $2.2 million, respectively. During the six months ended January 31, 2024, the Company’s net sales increased primarily from higher pricing, volume growth and a positive impact from foreign currency translation.
Current wording
Net sales for the nine months ended April 30, 2024 increased $99.6 million, or 3.9%, from the nine months ended April 30, 2023, reflecting higher sales in the Mobile Solutions segment of $43.2 million, or 2.6% growth, the Industrial Solutions segment of $41.1 million, or 5.6% growth and the Life Sciences segment of $15.3 million, or a 8.4% growth. Foreign currency translation increased net sales by $10.1 million compared to the nine months ended April 30, 2023, reflecting increases in the Mobile Solutions, Industrial Solutions and Life Sciences segments of $5.1 million, $4.2 million and $0.8 million, respectively. During the nine months ended April 30, 2024, the Company’s net sales increased primarily from volume growth, higher pricing and market share gains.
Previous wording
Gross margin as a percentage of net sales for the three months ended January 31, 2024 was 35.2% compared with 34.3% for the three months ended January 31, 2023. The increase in gross margin as a percentage of net sales was primarily driven by higher pricing and lower freight and select material costs.
Current wording
Gross margin as a percentage of net sales for the nine months ended April 30, 2024 was 35.4% compared with 33.7% for the nine months ended April 30, 2023. The increase in gross margin as a percentage of net sales was primarily driven by higher volume and pricing actions.
Previous wording
Selling, general and administrative expenses for the three months ended January 31, 2024 were $156.8 million, or 17.9% of net sales, compared with $149.6 million, or 18.1% of net sales, for the three months ended January 31, 2023, an increase of $7.2 million, or 4.9%. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to a decrease in severance and other non-recurring costs, partially offset by increased headcount and incremental expenses associated with investments in acquired Life Sciences businesses.
Current wording
Selling, general and administrative expenses for the nine months ended April 30, 2024 were $473.5 million, or 17.9% of net sales, compared with $444.7 million, or 17.4% of net sales, for the nine months ended April 30, 2023, an increase of $28.8 million, or 6.5%. The increase in selling, general and administrative expenses as a percentage of net sales was primarily due to increased headcount and incremental expenses associated with investments in acquired Life Sciences businesses.
Previous wording
Research and development expenses for the six months ended January 31, 2024 were $43.4 million, or 2.5% of net sales, compared with $37.2 million, or 2.2% of net sales, for the six months ended January 31, 2023. The increase in research and development expenses as a percent of revenue was due to higher headcount.
Current wording
Research and development expenses for the nine months ended April 30, 2024 were $68.2 million, or 2.6% of net sales, compared with $56.2 million, or 2.2% of net sales, for the nine months ended April 30, 2023. The increase in research and development expenses as a percent of revenue was due to higher headcount and incremental expenses associated with investments in acquired Life Sciences businesses.
Previous wording
Interest expense for the three months ended January 31, 2024 was $5.6 million, compared with $4.6 million for the three months ended January 31, 2023, an increase of $1.0 million, or 20.3%. The increase reflected rising variable interest rates.
Current wording
Interest expense for the nine months ended April 30, 2024 was $16.1 million, compared with $14.3 million for the nine months ended April 30, 2023, an increase of $1.8 million, or 12.4%. The increase reflected rising variable interest rates.
Previous wording
Other income, net for the three months ended January 31, 2024 was $4.9 million, compared with other income, net of $1.6 million for the three months ended January 31, 2023, an increase of $3.3 million, which was driven primarily by increases in earnings from joint ventures and lower foreign currency losses.
Current wording
Other income, net for the nine months ended April 30, 2024 was $14.1 million, compared with other income, net of $6.1 million for the nine months ended April 30, 2023, an increase of $8.0 million, which was driven primarily by lower foreign currency related losses in the current year and higher income from joint ventures.
Previous wording
The effective tax rate was 24.2% and 24.7% for the six months ended January 31, 2024 and 2023, respectively. The decrease in the effective tax rate was primarily due to a favorable shift in the mix of global earnings and increased foreign tax credit benefits.
Current wording
The effective tax rate was 23.1% and 24.0% for the nine months ended April 30, 2024 and 2023, respectively. The lower effective tax rate was primarily due to an increase in excess tax benefits on stock-based compensation.
Previous wording
Net sales of Aftermarket increased $43.1 million, driven by market share gains, strong end market demand and pricing benefits. Net sales of Off-Road decreased $14.3 million, primarily due to weak agriculture end market conditions.
Current wording
Net sales of Aftermarket increased $43.9 million, driven by market share gains, destocking in the prior year period and pricing benefits. Net sales of Off-Road decreased $11.4 million, primarily due to weak agriculture end market conditions.
Previous wording
Earnings before income taxes for the Mobile Solutions segment for the three months ended January 31, 2024 were $99.2 million, or 18.0% of net sales, an increase from 15.0% of net sales for the three months ended January 31, 2023. The increase was driven by favorable product mix, pricing actions and lower freight costs, partially offset by higher labor and overhead costs.
Current wording
Earnings before income taxes for the Mobile Solutions segment for the three months ended April 30, 2024 were $107.9 million, or 18.4% of net sales, an increase from 15.0% of net sales for the three months ended April 30, 2023. The increase was driven by higher volume, favorable product mix and pricing actions.
Previous wording
Net sales of Aftermarket increased $35.3 million driven by market share gains, strong end market demand and pricing benefits. Net sales of Off-Road decreased $23.2 million, primarily due to weaker agriculture end market conditions.
Current wording
Net sales of Aftermarket increased $79.2 million driven by market share gains, strong end market demand and pricing benefits. Net sales of Off-Road decreased $34.4 million, primarily due to weaker agriculture end market conditions.
Previous wording
Net sales of IFS increased $12.7 million, reflecting higher sales volume in power generation and industrial dust collection. Net sales of Aerospace and Defense increased by $4.3 million due to ongoing strength in the defense end market.
Current wording
Net sales of IFS increased $5.3 million, reflecting higher sales volume in industrial dust collection replacement parts and Power Generation. Net sales of Aerospace and Defense increased by $2.3 million due to strength in the Aerospace end market.
Previous wording
Earnings before income taxes for the Industrial Solutions segment for the three months ended January 31, 2024 were $47.4 million, or 18.0% of net sales, a decrease from 18.8% of net sales for the three months ended January 31, 2023. The decrease was primarily due to unfavorable product mix, partially offset by the impact from leveraging operating expenses.
Current wording
Earnings before income taxes for the Industrial Solutions segment for the three months ended April 30, 2024 were $50.3 million, or 18.7% of net sales, a decrease from 18.8% of net sales for the three months ended April 30, 2023.
Previous wording
Net sales of IFS increased $27.3 million, reflecting higher sales volume in power generation and industrial dust collection from strong demand in most geographies. Net sales of Aerospace and Defense increased by $6.3 million due to ongoing strength in the defense end market.
Current wording
Net sales of IFS increased $32.6 million, reflecting higher sales volume in power generation and industrial dust collection from strong demand in most geographies. Net sales of Aerospace and Defense increased by $8.5 million due to ongoing strength in the Defense end markets.
Previous wording
Losses before income taxes for the Life Sciences segment for the six months ended January 31, 2024 were $10.0 million, or 8.1% of net sales, a decrease from earnings before income taxes of 14.0% of net sales for the six months ended January 31, 2023. The decrease was driven by the expected impact from investments made to scale up the Company’s recently-acquired businesses.
Current wording
Earnings before income taxes for the Life Sciences segment for the three months ended April 30, 2024 were $0.5 million, or 0.7% of net sales, an increase from earnings before income taxes of 0.3% of net sales for the three months ended April 30, 2023.
Previous wording
Losses before income taxes for the Life Sciences segment for the three months ended January 31, 2024 were $5.8 million, or 9.2% of net sales, a decrease from earnings before income taxes of 10.6% of net sales for the three months ended January 31, 2023. The decrease was driven by the expected impact from investments made to scale up the Company’s recently-acquired businesses.
Current wording
Losses before income taxes for the Life Sciences segment for the nine months ended April 30, 2024 were $9.5 million, or 4.8% of net sales, a decrease from earnings before income taxes of 9.5% of net sales for the nine months ended April 30, 2023. The decrease was driven by the expected impact from investments made to scale up the Company’s recently-acquired businesses.
Previous wording
Cash provided by operating activities for the six months ended January 31, 2024 was $225.0 million, compared with $220.5 million for the six months ended January 31, 2023, an increase of $4.5 million. The increase in cash provided by operating activities was primarily driven by higher earnings.
Current wording
Cash provided by operating activities for the nine months ended April 30, 2024 was $366.5 million, compared with $353.7 million for the nine months ended April 30, 2023, an increase of $12.8 million. The increase in cash provided by operating activities was primarily driven by higher earnings.
Previous wording
Cash used in investing activities for the six months ended January 31, 2024 was $44.5 million, compared with $57.6 million for the six months ended January 31, 2023, a decrease of $13.1 million. The decrease in cash used was due to the timing of investments of capital in various projects in the current year.
Current wording
Cash used in investing activities for the nine months ended April 30, 2024 was $67.8 million, compared with $155.1 million for the nine months ended April 30, 2023, a decrease of $87.3 million. The decrease in cash used was due to lower cash usage related to acquisitions in the first nine months of the current year compared to the prior year and the timing of investments of capital in various projects in the current year.
Previous wording
Cash used in financing activities generally relates to the use of cash for payment of dividends and repurchases of the Company’s common stock, net of borrowing activity and proceeds from the exercise of stock options. Cash used in financing activities for the six months ended January 31, 2024 was $171.7 million, compared with $176.8 million for the six months ended January 31, 2023, a decrease of $5.1 million. The decrease was primarily driven by costs associated with the purchase of treasury stock of $86.6 million in the current year compared to $115.2 million in the prior year, partially offset by a net debt repayment of $37.4 million in the current year compared to $24.7 million in the prior year.
Current wording
Cash used in financing activities generally relates to the use of cash for payment of dividends and repurchases of the Company’s common stock, net of borrowing activity and proceeds from the exercise of stock options. Cash used in financing activities for the nine months ended April 30, 2024 was $257.5 million, compared with $204.1 million for the nine months ended April 30, 2023, an increase of $53.4 million. The increase was primarily driven by a net debt repayment of $109.1 million in the current year compared to $55.0 million in the prior year.
Previous wording
To determine the level of dividend and share repurchases, the Company considers recent and projected performance across key financial metrics, including earnings, cash flow from operations and total debt. Dividends paid for the six months ended January 31, 2024 and 2023 were $60.3 million and $56.2 million, respectively. Share repurchases for the six months ended January 31, 2024 and 2023 were $86.6 million and $115.2 million, respectively.
Current wording
To determine the level of dividend and share repurchases, the Company considers recent and projected performance across key financial metrics, including earnings, cash flow from operations and total debt. Dividends paid for the nine months ended April 30, 2024 and 2023 were $90.3 million and $84.1 million, respectively. Share repurchases for the nine months ended April 30, 2024 and 2023 were $113.8 million and $119.3 million, respectively.
Previous wording
Additional sources of liquidity are existing cash and available credit facilities. Cash and cash equivalents as of January 31, 2024 was $193.8 million, compared with $187.1 million as of July 31, 2023. The Company has capacity of $642.2 million available for further borrowing under existing credit facilities as of January 31, 2024, which includes $452.5 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Current wording
Additional sources of liquidity are existing cash and available credit facilities. Cash and cash equivalents as of April 30, 2024 was $223.7 million, compared with $187.1 million as of July 31, 2023. The Company has capacity of $573.4 million available for further borrowing under existing credit facilities as of April 30, 2024, which includes $382.5 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Previous wording
As of January 31, 2024, total debt, including short-term borrowings and long-term debt, represented 30.9% of total capitalization, defined as total debt plus total stockholders’ equity, compared with 33.2% as of July 31, 2023. As of January 31, 2024, the Company was in compliance with its financial covenants.
Current wording
As of April 30, 2024, total debt, including short-term borrowings and long-term debt, represented 27.3% of total capitalization, defined as total debt plus total stockholders’ equity, compared with 33.2% as of July 31, 2023. As of April 30, 2024, the Company was in compliance with its financial covenants.
Previous wording
Long-term debt outstanding was $563.7 million as of January 31, 2024, compared with $621.6 million as of July 31, 2023, a decrease of $57.9 million, primarily due to a repayment on the unsecured revolving credit facility during the six months ended January 31, 2024. As of January 31, 2024, there was $452.5 million available and $40.0 million outstanding on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Current wording
Long-term debt outstanding was $506.8 million as of April 30, 2024, compared with $621.6 million as of July 31, 2023, a decrease of $114.8 million, primarily due to a $125.0 million payment of maturing long-term debt during the three months ended April 30, 2024. As of April 30, 2024, there was $382.5 million available and $110.0 million outstanding on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026.
Previous wording
Accounts receivable, net as of January 31, 2024, was $599.3 million, compared with $599.7 million as of July 31, 2023, a decrease of $0.4 million. Days sales outstanding were 62 days as of January 31, 2024, a decrease from 64 days as of July 31, 2023.
Current wording
Accounts receivable, net as of April 30, 2024, was $638.4 million, compared with $599.7 million as of July 31, 2023, an increase of $38.7 million. Days sales outstanding were 60 days as of April 30, 2024, a decrease from 64 days as of July 31, 2023.
Previous wording
Inventories, net as of January 31, 2024, was $433.4 million, compared with $418.1 million as of July 31, 2023, an increase of $15.3 million. Days inventory on hand were 70 days as of January 31, 2024, an increase from 69 days as of July 31, 2023. Inventory turns were 5.2 times and 5.3 times per year as of January 31, 2024 and July 31, 2023, respectively.
Current wording
Inventories, net as of April 30, 2024, was $444.7 million, compared with $418.1 million as of July 31, 2023, an increase of $26.6 million. Days inventory on hand were 66 days as of April 30, 2024, a decrease from 69 days as of July 31, 2023.
Previous wording
Accounts payable as of January 31, 2024, was $325.8 million, compared with $304.9 million as of July 31, 2023, an increase of $20.9 million. Days payable outstanding were 53 days as of January 31, 2024, an increase from 49 days as of July 31, 2023.
Current wording
Accounts payable as of April 30, 2024, was $370.0 million, compared with $304.9 million as of July 31, 2023, an increase of $65.1 million. Days payable outstanding were 52 days as of April 30, 2024, an increase from 49 days as of July 31, 2023.