Oshkosh Corporation (OSK)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Sep 30, 2023 Dec 31, 2022 Sep 30, 2022
Cash and cash equivalents US$ in thousands 204,900 125,400 125,400 805,900 805,900
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 2,987,300 3,089,600 3,089,600 2,428,600 2,428,600
Cash ratio 0.07 0.04 0.04 0.33 0.33

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($204,900K + $—K) ÷ $2,987,300K
= 0.07

The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents. For Oshkosh Corporation, the cash ratio remained relatively stable at 0.33 as of September 30, 2022 and December 31, 2022, indicating that the company had $0.33 in cash and cash equivalents for every $1 of current liabilities during that period.

However, there was a significant decrease in the cash ratio to 0.04 as of September 30, 2023 and December 31, 2023, suggesting a potential strain on the company's liquidity position. This sharp decline may raise concerns about Oshkosh Corporation's ability to meet its short-term obligations solely through its cash reserves.

The cash ratio showed a slight improvement to 0.07 as of December 31, 2024, indicating a slight increase in the company's liquidity position compared to the previous year. Despite the improvement, the cash ratio remains relatively low, suggesting that Oshkosh Corporation may still have limited cash resources available to cover its short-term liabilities.

Overall, the trend in Oshkosh Corporation's cash ratio highlights the importance of closely monitoring the company's liquidity position to ensure it has sufficient cash on hand to meet its short-term financial obligations.