Oshkosh Corporation (OSK)

Working capital turnover

		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	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Revenue (ttm)	US$ in thousands	9,599,300	9,351,500	8,915,100	8,564,200	8,249,100	8,098,100	8,239,400	8,063,100	7,692,100	7,423,700	6,795,700	6,693,900	6,813,900	7,225,400	8,036,800	8,251,000	8,369,800	8,231,100	8,026,400	7,922,600
Total current assets	US$ in thousands	4,480,800	4,490,700	4,386,800	4,413,600	4,532,100	4,116,900	4,053,300	4,293,800	4,562,000	4,292,100	3,981,100	3,749,400	3,535,800	3,453,400	3,533,600	3,230,600	3,408,300	3,361,200	3,369,700	2,944,200
Total current liabilities	US$ in thousands	3,089,600	3,090,200	2,418,000	2,458,600	2,428,600	2,272,900	2,338,800	2,446,300	2,151,700	2,047,500	1,902,500	1,711,500	1,585,100	1,629,300	1,805,000	1,509,200	1,741,900	1,687,500	1,810,100	1,478,200
Working capital turnover		6.90	6.68	4.53	4.38	3.92	4.39	4.81	4.36	3.19	3.31	3.27	3.28	3.49	3.96	4.65	4.79	5.02	4.92	5.15	5.40

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,599,300K ÷ ($4,480,800K – $3,089,600K)
= 6.90

Working capital turnover is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales.

Analyzing the working capital turnover of Oshkosh Corp over the past eight quarters, we can see a fluctuating trend. In Q4 2023, the working capital turnover ratio was 6.94, which was higher compared to the previous quarter's ratio of 6.71. This indicates that Oshkosh Corp was able to generate more sales revenue using its working capital in the most recent quarter.

In Q1 and Q2 2023, the working capital turnover ratios were 4.40 and 4.55, respectively, showing a slight decrease compared to the previous quarters. This could indicate a temporary slowdown in the efficiency of working capital utilization during those periods.

Looking back further, we can see that the working capital turnover ratio has generally been increasing since Q1 2022. The ratio was 4.39 in Q1 2022 and reached its peak at 6.94 in Q4 2023. This upward trend suggests that Oshkosh Corp has been improving its efficiency in utilizing its working capital to drive sales growth over the past year.

Overall, the working capital turnover ratio of Oshkosh Corp has shown fluctuations but has exhibited an upward trend in efficiency over the past eight quarters. It is important for the company to continue monitoring and managing its working capital effectively to sustain and improve its operational performance.