Oshkosh Corporation (OSK)

Liquidity ratios

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
Current ratio 1.45 1.45 1.81 1.80 1.87 1.81 1.73 1.76 2.12 2.10 2.09 2.19 2.23 2.12 1.96 2.14 1.96 1.99 1.86 1.99
Quick ratio 0.47 0.54 0.71 0.75 0.81 0.68 0.69 0.79 1.11 1.09 1.04 0.93 0.91 0.71 0.71 0.78 0.88 0.84 0.77 0.83
Cash ratio 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 0.09 0.18 0.11

Oshkosh Corp's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been relatively stable, ranging from 1.45 to 1.87. This indicates that Oshkosh Corp has generally been able to meet its short-term debt obligations with its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown variability, ranging from 0.76 to 1.13. While the quick ratio is generally lower than the current ratio, the company has maintained a level above 1 in most quarters, suggesting that it can cover its short-term liabilities without relying heavily on inventory.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has displayed more significant fluctuations, ranging from 0.06 to 0.41. A decreasing trend in the cash ratio may indicate potential concerns about the company's ability to cover its obligations with its readily available cash resources.

Overall, Oshkosh Corp's liquidity ratios indicate a reasonably healthy liquidity position, with a solid ability to meet its short-term obligations. However, the fluctuations in the ratios, particularly the cash ratio, suggest the need for ongoing monitoring to ensure the company's liquidity remains adequate.

Additional liquidity measure

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
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

The cash conversion cycle for Oshkosh Corp has shown variability over the past eight quarters. It is a metric that indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle was 122.47 days, indicating that the company took on average 122.47 days to convert its investments in inventory and other resources into cash flows from sales during this quarter. This was a slight improvement from the previous quarter, Q3 2023, where the cash conversion cycle was 131.97 days.

Looking at the trend over the past year, the cash conversion cycle has generally been higher in the first half of the year (Q1 and Q2) compared to the second half (Q3 and Q4). However, there was a noticeable increase in the cycle from Q1 to Q2 2023, reflecting a challenge in efficiently managing the cash conversion process during that period.

Overall, a downward trend in the cash conversion cycle over time would indicate that the company is getting better at managing its working capital and turning its investments into cash more efficiently. On the other hand, an increasing trend could signal potential challenges in managing inventory, accounts receivable, and accounts payable effectively, leading to longer cash conversion cycles and potentially impacting the company's liquidity and financial performance.