Oshkosh Corporation (OSK)

Working capital 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
Revenue (ttm)	US$ in thousands	10,730,200	10,598,900	10,367,400	9,933,600	9,657,900	9,394,700	8,951,500	8,604,400	8,282,000	7,870,100	7,866,400	8,009,200	7,952,500	7,737,300	7,458,500	6,830,500	6,738,200	6,856,800	7,268,300	8,080,200
Total current assets	US$ in thousands	4,527,500	5,058,000	5,042,300	4,731,500	4,480,800	4,490,700	4,386,800	4,413,600	4,532,100	4,116,900	4,053,300	4,293,800	4,114,600	4,417,900	4,292,100	3,981,100	3,749,400	3,535,800	3,453,400	3,533,600
Total current liabilities	US$ in thousands	2,987,300	3,457,600	3,491,700	3,319,500	3,089,600	3,090,200	2,418,000	2,458,600	2,428,600	2,272,900	2,338,800	2,446,300	2,143,000	2,151,700	2,047,500	1,902,500	1,711,500	1,585,100	1,629,300	1,805,000
Working capital turnover		6.97	6.62	6.69	7.04	6.94	6.71	4.55	4.40	3.94	4.27	4.59	4.34	4.03	3.41	3.32	3.29	3.31	3.52	3.98	4.67

December 31, 2024 calculation

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

The working capital turnover ratio for Oshkosh Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024.

The trend indicates an initial high of 4.67 in March 2020, followed by a gradual decrease in the ratio, reaching a low of 3.29 in March 2021. However, from June 2021 onwards, the ratio started to increase steadily, with peaks observed in March 2024 at 7.04 and December 31, 2024, at 6.97.

A higher working capital turnover ratio implies that the company is generating more revenue from its investment in working capital, which indicates efficient management of its working capital. On the other hand, a lower ratio could signal inefficiencies or issues with inventory management, accounts receivable collection, or accounts payable management.

The consistent improvement in the working capital turnover ratio from 2021 to 2024 suggests that Oshkosh Corporation has been effectively utilizing its working capital to generate sales. This could be a positive indicator of the company’s operational efficiency and liquidity management during the observed period.

However, the significant fluctuations seen in the ratio over the period also call for a deeper analysis to understand the reasons behind these changes and to assess the overall financial health and performance of the company.