Oshkosh Corporation (OSK)

Liquidity ratios

	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
Current ratio	1.46	1.44	1.43	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
Quick ratio	0.50	0.50	0.48	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
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

The liquidity ratios of Oshkosh Corporation over the past few quarters indicate varying levels of short-term financial health. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been relatively stable around 1.4 to 1.8, showing that Oshkosh has generally had enough current assets to meet its current liabilities.

On the other hand, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has shown more volatility ranging from 0.47 to 1.11. This implies that Oshkosh may have had some difficulty meeting its short-term obligations without relying on inventory in some periods.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has seen fluctuations from 0.02 to 0.64. This indicates that Oshkosh may have had varying levels of available cash to cover its immediate liabilities, with the ratio dropping significantly in certain quarters.

Overall, Oshkosh Corporation's liquidity ratios suggest that the company has generally maintained a sufficient level of liquidity to meet its short-term obligations, but there have been periods of lower liquidity where reliance on inventory or other current assets may have been necessary to cover immediate financial needs. Monitoring these ratios closely will be essential for assessing Oshkosh's ongoing ability to meet its short-term financial commitments.

Additional liquidity measure

		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 conversion cycle	days	102.82	102.93	103.33	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

The cash conversion cycle of Oshkosh Corporation has shown some fluctuations over the periods analyzed. The trend indicates that the company's cash conversion cycle has experienced a gradual increase in recent quarters, with the cycle varying between 70.09 days to 117.45 days over the past five years.

An increasing cash conversion cycle suggests that Oshkosh Corporation is taking longer to convert its investments in inventory into cash receipts from sales. This could indicate potential inefficiencies in managing working capital and liquidity, as the company may be tying up more capital in inventory and accounts receivable.

It is essential for Oshkosh Corporation to monitor and manage its cash conversion cycle effectively to optimize cash flow and ensure operational efficiency. Implementing inventory management strategies, negotiating favorable payment terms with suppliers, and improving the collection of receivables could help in reducing the cash conversion cycle and enhancing overall financial performance.