Oshkosh Corporation (OSK)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Sep 30, 2023	Dec 31, 2022	Sep 30, 2022
Cost of revenue	US$ in thousands	8,760,800	7,874,000	7,977,100	7,227,600	7,227,600
Inventory	US$ in thousands	2,265,700	2,131,600	2,131,600	1,865,600	1,865,600
Inventory turnover		3.87	3.69	3.74	3.87	3.87

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $8,760,800K ÷ $2,265,700K
= 3.87

Based on the inventory turnover data provided for Oshkosh Corporation over the past few years, we can observe a relatively stable trend with slight fluctuations. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times during a specific period the inventory is sold and replaced.

In September 2022 and December 2022, the inventory turnover ratio was consistent at 3.87 times. This suggests that Oshkosh Corporation was able to sell and replace its inventory approximately 3.87 times during the specified periods.

In September 2023, there was a slight decrease in the inventory turnover ratio to 3.74, indicating a potential slowdown in inventory management efficiency compared to the previous period. This decrease could be attributed to various factors such as changes in demand, production delays, or inventory management issues.

By December 2023, the inventory turnover ratio further declined to 3.69, suggesting a potential continuation of the trend observed in the previous period. A decreasing inventory turnover ratio may indicate an excess of inventory or challenges in selling products efficiently.

However, by December 2024, the inventory turnover ratio rebounded to 3.87, reaching the same level as seen in the initial periods. This improvement could signal enhanced inventory management practices or increased demand for Oshkosh Corporation's products.

Overall, while there have been minor fluctuations in Oshkosh Corporation's inventory turnover ratio over the specified periods, the company appears to have maintained a relatively stable level of efficiency in managing its inventory. It is important for the company to continuously monitor and optimize its inventory turnover ratio to ensure effective operations and profitability.