Oshkosh Corporation (OSK)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	8,787,900	8,664,200	8,470,600	8,144,800	7,991,800	7,853,300	7,599,500	7,436,800	7,246,900	6,978,300	6,974,800	6,973,100	6,802,600	6,516,500	6,235,300	5,734,400	5,664,800	5,736,500	6,031,600	6,667,100
Inventory	US$ in thousands	2,265,700	2,321,100	2,216,500	2,208,400	2,131,600	2,020,600	1,900,200	1,905,900	1,865,600	1,669,700	1,584,300	1,527,900	1,382,700	1,267,400	1,273,200	1,397,200	1,502,800	1,505,400	1,714,400	1,655,900
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,787,900K ÷ $2,265,700K
= 3.88

Using the provided data, Oshkosh Corporation's inventory turnover has fluctuated over the years. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a certain period. A higher ratio typically implies better inventory management and efficiency.

From March 31, 2020, to December 31, 2024, Oshkosh Corporation's inventory turnover has ranged from a low of 3.52 to a high of 5.14. Generally, the trend shows an improving inventory turnover rate from 3.52 in June 2020 to 5.14 in September 2021.

However, there were fluctuations in the following quarters, with the ratio declining to 3.69 by March 31, 2024. This could indicate potential issues such as excess inventory, declining sales, or changes in demand.

Overall, monitoring the inventory turnover ratio is essential for evaluating how efficiently Oshkosh Corporation is managing its inventory levels and aligning them with sales demand. A consistent and optimal inventory turnover ratio is crucial for maintaining healthy cash flows and profitability.