Oshkosh Corporation (OSK)

Cash ratio

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 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
Cash and cash equivalents US$ in thousands 160,900 141,400 69,900 125,400 106,100 355,500 538,700 805,900 474,800 397,400 944,500 1,375,800 1,166,300 1,093,200 898,600 582,900 331,600 403,900 264,000 448,400
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 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 2,151,700 2,047,500 1,902,500 1,711,500 1,585,100 1,629,300 1,805,000 1,509,200 1,741,900
Cash ratio 0.05 0.04 0.02 0.04 0.03 0.15 0.22 0.33 0.21 0.17 0.39 0.64 0.57 0.57 0.53 0.37 0.20 0.22 0.17 0.26

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($160,900K + $—K) ÷ $3,457,600K
= 0.05

The cash ratio of Oshkosh Corporation has shown significant fluctuations over the past few quarters. The ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Looking at the trend, we observe that the cash ratio was relatively low in the first quarter of 2020 but gradually improved over the next few quarters, reaching a peak of 0.64 in the second quarter of 2022. This indicates that the company had a substantial amount of cash relative to its short-term obligations during that period.

However, there was a sharp decline in the cash ratio in the first quarter of 2023, dropping to 0.22, and further decreasing to 0.02 in the third quarter of 2024. This decline could signal potential liquidity challenges or increased short-term obligations compared to available cash.

It is important for Oshkosh Corporation to closely monitor and manage its cash position to ensure it can meet its short-term financial obligations. Analyzing the factors contributing to the fluctuations in the cash ratio can provide valuable insights into the company's liquidity management and financial health.