Oshkosh Corporation (OSK)

Inventory turnover

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	9,625,600	9,401,800	8,991,900	8,843,000	8,612,500	8,320,600	8,139,000	7,918,100	7,833,300	7,877,000	7,628,600	7,197,300	5,251,500	4,718,700	4,633,600	4,734,500	6,714,100	7,376,600	7,345,800	7,234,900
Inventory	US$ in thousands	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	1,411,500	1,273,200	1,397,200	1,502,800	1,505,400	1,714,400	1,655,900	1,430,700	1,249,200
Inventory turnover		4.15	4.24	4.07	4.15	4.26	4.38	4.27	4.24	4.69	4.97	4.99	5.10	4.12	3.38	3.08	3.15	3.92	4.45	5.13	5.79

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,625,600K ÷ $2,321,100K
= 4.15

The inventory turnover ratio for Oshkosh Corporation has shown some fluctuation over the past few quarters. The ratio ranged from a low of 3.08 to a high of 5.79. Overall, the company's inventory turnover has generally been above 4, indicating that the company effectively manages its inventory levels.

A higher inventory turnover ratio typically suggests that the company is efficiently selling its inventory and restocking at an appropriate pace. Oshkosh Corporation's inventory turnover has been relatively stable around the range of 4 to 5 times over the past few quarters, which indicates that the company is managing its inventory effectively.

It is worth noting that a consistently high inventory turnover ratio may indicate that the company is possibly maintaining lean inventory levels, which can be beneficial in terms of reducing holding costs and improving cash flow. However, a very high inventory turnover ratio should be analyzed in conjunction with other financial metrics to ensure that it does not negatively impact the company's operations or customer service.

In conclusion, based on the historical data provided, Oshkosh Corporation's inventory turnover ratio has been relatively consistent and indicative of efficient inventory management practices.