Oshkosh Corporation (OSK)

Payables 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
Payables	US$ in thousands	1,054,400	1,046,300	1,059,300	1,214,500	1,092,200	1,067,600	1,091,200	1,129,000	1,020,200	1,011,900	982,300	860,400	753,900	662,300	532,200	577,800	583,500	726,100	612,700	795,500
Payables turnover		9.13	8.99	8.49	7.28	7.89	7.79	7.46	7.01	7.68	7.78	7.77	8.37	6.97	7.12	8.71	8.19	11.51	10.16	11.99	9.09

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,625,600K ÷ $1,054,400K
= 9.13

The payables turnover ratio for Oshkosh Corporation has shown fluctuations over the past several quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a period.

In the latest quarter, the payables turnover ratio was 9.13, which suggests that Oshkosh Corporation paid off its accounts payable approximately 9.13 times during the period. This is an improvement compared to the previous quarter and indicates a more efficient management of its payables.

Looking at the trend over the past few quarters, the payables turnover ratio has generally been on an upward trajectory, with some fluctuations. This could indicate that Oshkosh Corporation is becoming more efficient in managing its accounts payable and potentially negotiating better payment terms with its suppliers.

A high payables turnover ratio can suggest good liquidity and strong supplier relationships, as the company is able to settle its payables quickly. However, it's important to note that an extremely high ratio could also indicate that the company is overly aggressive in delaying payments to suppliers, which could harm relationships in the long term.

Overall, a steadily increasing payables turnover ratio for Oshkosh Corporation reflects positively on its ability to manage its working capital effectively and optimize cash flow.