Oshkosh Corporation (OSK)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Sep 30, 2023	Dec 31, 2022	Sep 30, 2022
Revenue	US$ in thousands	10,730,200	9,648,300	9,657,900	8,282,000	8,282,000
Total current assets	US$ in thousands	4,527,500	4,480,800	4,480,800	4,532,100	4,532,100
Total current liabilities	US$ in thousands	2,987,300	3,089,600	3,089,600	2,428,600	2,428,600
Working capital turnover		6.97	6.94	6.94	3.94	3.94

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,730,200K ÷ ($4,527,500K – $2,987,300K)
= 6.97

Working capital turnover is a financial ratio that measures a company's efficiency in utilizing its working capital to generate revenue. It is calculated by dividing net sales by the average working capital during a specific period.

The working capital turnover ratio for Oshkosh Corporation has shown a consistent trend over the past few years. In September 2022 and December 2022, the ratio stood at 3.94, indicating that the company generated $3.94 in net sales for every dollar of working capital invested.

Subsequently, in September 2023 and December 2023, the working capital turnover ratio increased to 6.94, reflecting a significant improvement in efficiency in utilizing working capital to generate revenue. This sharp increase suggests that Oshkosh Corporation was able to generate $6.94 in net sales for each dollar of working capital invested during these periods.

By the end of December 2024, the working capital turnover ratio slightly increased to 6.97, indicating the company's continual effectiveness in utilizing its working capital efficiently to drive revenue generation.

Overall, the increasing trend in the working capital turnover ratio over the years for Oshkosh Corporation reflects a positive efficiency in managing its working capital to generate sales revenue, which is a favorable indicator for investors and stakeholders.