Oshkosh Corporation (OSK)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Sep 30, 2023	Dec 31, 2022	Sep 30, 2022
Earnings before interest and tax (EBIT)	US$ in thousands	1,022,500	843,800	—	372,300	372,300
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,152,100	3,705,300	3,705,300	3,185,700	3,185,700
Return on total capital		24.63%	22.77%	0.00%	11.69%	11.69%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,022,500K ÷ ($—K + $4,152,100K)
= 24.63%

The return on total capital for Oshkosh Corporation indicates the efficiency with which the company is utilizing both its debt and equity to generate returns.

In September 2022 and December 2022, the return on total capital remained consistent at 11.69%, suggesting a stable performance during that period. However, there was a significant drop to 0.00% in September 2023, indicating potential issues with capital allocation and performance during that period.

The return on total capital bounced back strongly in December 2023, reaching 22.77%, which could signify improved operational efficiency and effectiveness in utilizing capital. This positive momentum continued into December 2024, with a further increase to 24.63%, demonstrating strong capital productivity and value creation for shareholders.

Overall, the fluctuation in return on total capital over the analyzed periods highlights the importance of monitoring capital efficiency and management's ability to allocate resources effectively to optimize returns for the company and its investors.