Oshkosh Corporation (OSK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.49% | 12.81% | 16.48% | 16.41% | 18.21% |
| Operating profit margin | 8.72% | 4.52% | 7.69% | 7.13% | 9.56% |
| Pretax margin | 8.20% | 3.30% | 6.62% | 6.41% | 9.01% |
| Net profit margin | 6.22% | 2.11% | 6.14% | 4.77% | 6.95% |
Oshkosh Corp has shown fluctuations in its profitability ratios over the past five years. The gross profit margin has improved from 12.73% in 2022 to 17.40% in 2023, indicating better control over production costs. The operating profit margin has also shown significant improvement, reaching 8.67% in 2023 compared to 4.59% in 2022, showcasing better operational efficiency.
Similarly, the pretax margin has increased from 3.33% in 2022 to 8.26% in 2023, reflecting higher earnings before taxes relative to total revenue. The net profit margin has also seen a positive trend, rising to 6.19% in 2023 from 2.10% in 2022, indicating an increase in profitability after accounting for all expenses.
Overall, Oshkosh Corp has made notable progress in improving its profitability ratios, signaling enhanced financial performance and management effectiveness over the analyzed period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.17% | 4.82% | 8.42% | 8.34% | 14.32% |
| Return on assets (ROA) | 6.55% | 2.25% | 6.72% | 5.58% | 10.41% |
| Return on total capital | 19.47% | 9.85% | 14.18% | 13.21% | 23.31% |
| Return on equity (ROE) | 16.14% | 5.46% | 14.08% | 11.38% | 22.29% |
Based on the provided profitability ratios for Oshkosh Corp, we can observe the following trends:
1. Operating Return on Assets (Operating ROA): This ratio indicates the efficiency of the company in generating operating income relative to its total assets. The Operating ROA has shown an improving trend from 2019 to 2023, with a significant increase from 4.92% in 2022 to 9.17% in 2023. This suggests that Oshkosh Corp has been able to enhance its operational efficiency and profitability over the past few years.
2. Return on Assets (ROA): ROA measures the overall profitability of the company by evaluating its ability to generate earnings from its assets. Oshkosh Corp's ROA has fluctuated over the years, with a notable increase from 2.25% in 2022 to 6.55% in 2023. This improvement signifies that the company has been more effective in utilizing its assets to generate profits.
3. Return on Total Capital: This ratio assesses the return earned on the total capital employed by the company. Oshkosh Corp's Return on Total Capital has also exhibited an upward trend, reaching 18.71% in 2023 compared to 10.03% in 2022. This indicates that the company has been successful in generating higher returns for its stakeholders relative to the total capital invested.
4. Return on Equity (ROE): ROE measures the profitability of the company from the perspective of its shareholders' equity. Oshkosh Corp's ROE has increased from 5.46% in 2022 to 16.14% in 2023, demonstrating a substantial improvement in the company's ability to generate returns for its shareholders.
Overall, the profitability ratios of Oshkosh Corp have shown positive trends, indicating enhanced operational efficiency, improved asset utilization, and increased returns for both investors and overall capital employed. These trends suggest that Oshkosh Corp has been effectively managing its resources and generating higher profitability over the analyzed period.