Oshkosh Corporation (OSK)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	9,608,800	8,231,100	7,695,300	6,803,800	8,333,600
Property, plant and equipment	US$ in thousands	1,069,500	826,200	595,900	565,900	573,600
Fixed asset turnover		8.98	9.96	12.91	12.02	14.53

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,608,800K ÷ $1,069,500K
= 8.98

The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. Oshkosh Corp's fixed asset turnover has shown a declining trend over the past five years, decreasing from 14.61 in September 2019 to 9.03 in December 2023. This indicates that the company is generating less revenue from its fixed assets in recent years.

A high fixed asset turnover ratio is generally preferred as it suggests that the company is effectively utilizing its fixed assets to generate sales. In Oshkosh Corp's case, the decreasing trend in the fixed asset turnover ratio may raise concerns about the company's ability to efficiently utilize its fixed assets to generate revenue.

Investors and stakeholders may want to further investigate the reasons behind the declining fixed asset turnover ratio to assess the company's operational efficiency and effectiveness in utilizing its fixed assets for revenue generation. Factors such as changes in business operations, investment in new assets, or market conditions could be influencing the trend observed in Oshkosh Corp's fixed asset turnover ratio.