Oshkosh Corporation (OSK)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	87.98	85.63	83.36	85.47	86.00	77.80	73.41	73.10	71.58	88.49	108.08	118.38	116.06	93.20	81.94	71.09	63.02	71.77	83.63	72.75
Days of sales outstanding (DSO)	days	50.05	60.51	55.98	55.90	51.42	48.34	53.89	44.70	48.27	52.73	47.11	38.13	45.94	42.01	39.68	40.33	47.20	56.05	49.01	49.39
Number of days of payables	days	50.13	46.29	46.83	48.94	52.04	47.54	46.89	47.00	43.63	52.40	51.23	41.92	44.54	31.72	35.93	30.44	40.13	39.70	45.91	34.27
Cash conversion cycle	days	87.91	99.85	92.50	92.44	85.37	78.61	80.41	70.80	76.22	88.82	103.96	114.58	117.45	103.49	85.69	80.97	70.09	88.11	86.73	87.87

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.98 + 50.05 – 50.13
= 87.91

The cash conversion cycle for Oshkosh Corp has shown some fluctuation over the past eight quarters. It was at its highest in Q3 2023 at 131.97 days and has ranged between 107.85 days to 131.97 days during the period. The company's ability to convert its resources efficiently into cash has improved since Q1 2022 when the cycle was 115.20 days. However, Oshkosh Corp experienced a peak in the cycle in Q3 2023, indicating a potential slowdown in cash generation from its operations. It is essential for Oshkosh Corp to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management and liquidity.