Oshkosh Corporation (OSK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.40 | 98.81 | 97.53 | 94.21 | 94.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 94.40 | 98.81 | 97.53 | 94.21 | 94.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.40 + — – —
= 94.40
The cash conversion cycle of Oshkosh Corporation shows a fluctuating trend over the period analyzed. Starting at 94.21 days in September 2022 and remaining relatively stable in December 2022, the cycle slightly increased to 97.53 days by September 2023. This increase continued into December 2023, reaching 98.81 days before decreasing to 94.40 days by December 2024.
The cash conversion cycle reflects the time it takes for Oshkosh Corporation to convert its investments in inventory and other resources into cash inflows from sales. A longer cycle indicates that the company is taking more time to collect cash from its operations, potentially facing liquidity challenges or inefficiencies in managing working capital.
Overall, Oshkosh Corporation's cash conversion cycle displayed some variability during the period, and it would be important for the company to closely monitor and manage its working capital efficiency to ensure optimal cash flow management and operational effectiveness.
Peer comparison
Dec 31, 2024