Oshkosh Corporation (OSK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.30 | 7.08 | 7.56 | 7.93 | 7.70 | |
| DSO | days | 50.00 | 51.53 | 48.25 | 46.01 | 47.40 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.30
= 50.00
The Days of Sales Outstanding (DSO) for Oshkosh Corp has shown a fluctuating trend over the past five years. It increased from 71.06 days in 2019 to 71.39 days in 2020, indicating a slight uptick in the time taken to collect receivables. However, in 2021, the DSO increased significantly to 80.97 days before coming down to 78.00 days in 2022. Despite the decrease in 2022, the DSO remained relatively high compared to previous years.
In 2023, the DSO increased again to 80.51 days, which suggests that Oshkosh Corp might be facing challenges in collecting payments from customers within a reasonable timeframe. A high DSO can indicate liquidity issues or inefficiencies in accounts receivable management, potentially impacting the company's cash flow and working capital management.
It is crucial for Oshkosh Corp to closely monitor and address the factors contributing to the high DSO in order to improve cash flow, strengthen liquidity, and maintain financial stability in the long run.
Peer comparison
Dec 31, 2023