Oshkosh Corporation (OSK)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.15 | 4.26 | 4.38 | 4.27 | 4.24 | 4.69 | 4.97 | 4.99 | 5.10 | 4.12 | 3.38 | 3.08 | 3.15 | 3.92 | 4.45 | 5.13 | 5.79 | 5.09 | 4.36 | 5.02 | |
| DOH | days | 87.98 | 85.63 | 83.36 | 85.47 | 86.00 | 77.80 | 73.41 | 73.10 | 71.58 | 88.49 | 108.08 | 118.38 | 116.06 | 93.20 | 81.94 | 71.09 | 63.02 | 71.77 | 83.63 | 72.75 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.15
= 87.98
Oshkosh Corp's days of inventory on hand (DOH) have shown a consistent upward trend over the past eight quarters, increasing from 80.51 days in Q1 2022 to 97.53 days in Q4 2023. This indicates that the company may be taking longer to convert its inventory into sales.
The gradual increase in DOH suggests that Oshkosh Corp may be carrying excess inventory or facing challenges in selling its products efficiently. This can tie up cash and increase storage costs, potentially impacting the company's profitability.
It is advisable for Oshkosh Corp to closely monitor and manage its inventory levels to optimize the use of resources and improve cash flow. Reducing DOH through effective inventory management strategies, such as implementing just-in-time practices or streamlining the supply chain, can help the company enhance its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023