Oshkosh Corporation (OSK)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.10 | 97.78 | 95.51 | 98.97 | 97.35 | 93.91 | 91.27 | 93.54 | 93.96 | 87.33 | 82.91 | 79.98 | 74.19 | 70.99 | 74.53 | 88.93 | 96.83 | 95.79 | 103.75 | 90.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 94.10 | 97.78 | 95.51 | 98.97 | 97.35 | 93.91 | 91.27 | 93.54 | 93.96 | 87.33 | 82.91 | 79.98 | 74.19 | 70.99 | 74.53 | 88.93 | 96.83 | 95.79 | 103.75 | 90.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.10 + — – —
= 94.10
The cash conversion cycle is a metric that measures the time it takes a company to convert its investments in inventory into cash flows from sales. For Oshkosh Corporation, the cash conversion cycle has shown some fluctuations over the periods provided.
From March 31, 2020, to June 30, 2020, there was an increase in the cash conversion cycle from 90.65 days to 103.75 days, indicating a potential increase in the time it takes to convert inventory into cash. However, there was a slight improvement in the cycle in the following quarters, with the cycle dropping to 74.53 days by June 30, 2021. This improvement continued until September 30, 2021, where the cycle reached its lowest point at 70.99 days.
From there, the cash conversion cycle began to rise again, reaching 97.78 days by September 30, 2024. This increase may suggest a slowdown in the company's ability to efficiently manage its working capital and convert inventory into cash quickly.
Overall, Oshkosh Corporation's cash conversion cycle has shown some variability over the periods provided, with fluctuations indicating changes in the company's efficiency in managing its working capital and converting investments in inventory into cash. It is important for the company to continue monitoring and potentially optimizing its working capital management to maintain a healthy cash conversion cycle.
Peer comparison
Dec 31, 2024