Oshkosh Corporation (OSK)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover 3.88 3.73 3.82 3.69 3.75 3.89 4.00 3.90 3.88 4.18 4.40 4.56 4.92 5.14 4.90 4.10 3.77 3.81 3.52 4.03
DOH days 94.10 97.78 95.51 98.97 97.35 93.91 91.27 93.54 93.96 87.33 82.91 79.98 74.19 70.99 74.53 88.93 96.83 95.79 103.75 90.65

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.88
= 94.10

The days of inventory on hand (DOH) for Oshkosh Corporation has shown some fluctuations over the past few years, ranging from a low of 70.99 days on September 30, 2021, to a high of 103.75 days on June 30, 2020. This metric indicates how many days, on average, the company holds inventory before selling it.

A decreasing trend in DOH values from September 30, 2021 (70.99 days) to December 31, 2024 (94.10 days) suggests that Oshkosh Corporation has been managing its inventory more efficiently, aligning with a strategy to reduce inventory holding costs and improve working capital management.

However, the slight increase in DOH values from September 30, 2024 (97.78 days) to December 31, 2024 (94.10 days) indicates a potential need for the company to reevaluate its inventory management practices to avoid overstocking or obsolete inventory concerns.

Overall, while fluctuations in DOH are common, it is essential for Oshkosh Corporation to strike a balance in maintaining adequate inventory levels to meet customer demand without holding excessive inventory that could tie up capital and impact profitability.