Oshkosh Corporation (OSK)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total current assets	US$ in thousands	4,480,800	4,532,100	4,562,000	3,535,800	3,408,300
Total current liabilities	US$ in thousands	3,089,600	2,428,600	2,151,700	1,585,100	1,741,900
Current ratio		1.45	1.87	2.12	2.23	1.96

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,480,800K ÷ $3,089,600K
= 1.45

The current ratio of Oshkosh Corp has shown a declining trend over the past five years, decreasing from 2.23 in September 2020 to 1.45 in December 2023. This decreasing trend indicates a potential weakening in the company's short-term liquidity position and ability to meet its current obligations with its current assets.

A current ratio below 1 may indicate potential liquidity issues, as it suggests that the company may not have enough current assets to cover its current liabilities. However, a current ratio above 1 indicates that the company has sufficient current assets to cover its current liabilities.

While a higher current ratio is generally preferred as it indicates a stronger liquidity position, a substantial increase in the current ratio may also imply that the company is not efficiently utilizing its current assets to generate revenue or may have excess idle assets. It is important to consider the industry norms and the company's specific circumstances when interpreting the current ratio.