Oshkosh Corporation (OSK)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	837,600	372,300	592,100	484,800	797,000
Total assets	US$ in thousands	9,129,200	7,729,000	7,035,700	5,815,900	5,566,300
Operating ROA		9.17%	4.82%	8.42%	8.34%	14.32%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $837,600K ÷ $9,129,200K
= 9.17%

Operating return on assets (operating ROA) is a key financial ratio used to measure a company's operating efficiency in utilizing its assets to generate profits. Over the past five years, Oshkosh Corp's operating ROA has shown some fluctuations:

1. In 2019, the operating ROA was relatively high at 14.32%, indicating that Oshkosh Corp was effectively generating profits from its assets.
2. However, the operating ROA decreased to 8.40% in 2020 before further declining to 7.90% in 2021, suggesting a potential inefficiency in utilizing its assets to generate earnings during these years.
3. The operating ROA then improved in 2022 to 4.92%, indicating a better performance in generating profits from its operating activities.
4. In the most recent period as of December 31, 2023, the operating ROA further increased to 9.17%, signaling an improvement in the company's operational efficiency and ability to generate earnings from its assets.

Overall, the trend of Oshkosh Corp's operating ROA demonstrates some variability, with fluctuations in performance over the past five years. It is essential for stakeholders to monitor this ratio closely as it reflects the company's operational effectiveness in generating profits from its assets.