Oshkosh Corporation (OSK)

Solvency 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
Debt-to-assets ratio	0.07	0.07	0.07	0.08	0.08	0.09	0.09	0.09	0.12	0.12	0.13	0.14	0.14	0.14	0.14	0.15	0.15	0.15	0.15	0.16
Debt-to-capital ratio	0.14	0.14	0.15	0.15	0.16	0.17	0.17	0.17	0.20	0.20	0.21	0.22	0.22	0.23	0.23	0.23	0.24	0.24	0.25	0.25
Debt-to-equity ratio	0.16	0.17	0.18	0.18	0.19	0.21	0.21	0.20	0.24	0.25	0.27	0.28	0.29	0.30	0.30	0.31	0.32	0.32	0.33	0.34
Financial leverage ratio	2.46	2.50	2.37	2.44	2.43	2.41	2.38	2.35	2.10	2.08	2.10	2.05	2.04	2.08	2.18	2.07	2.14	2.10	2.19	2.09

The solvency ratios of Oshkosh Corp provide insights into the company's ability to meet its long-term financial obligations. Based on the data provided, we can observe the following trends:

1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Oshkosh Corp's debt-to-assets ratio has been relatively stable over the quarters, hovering around 0.07 to 0.12. A lower ratio suggests that the company relies less on debt to finance its assets, indicating a lower financial risk.

2. Debt-to-capital ratio: This ratio assesses the proportion of the company's capital structure that is comprised of debt. Oshkosh Corp's debt-to-capital ratio fluctuates within a narrow range of 0.15 to 0.24. A lower ratio indicates a lower dependency on debt for overall capital financing.

3. Debt-to-equity ratio: This ratio measures the extent to which the company's operations are funded by debt relative to equity. Oshkosh Corp's debt-to-equity ratio has remained fairly consistent, varying between 0.18 to 0.31. A lower ratio implies less financial leverage and a lower risk of insolvency.

4. Financial leverage ratio: This ratio provides an indication of the company's financial risk and the extent of its reliance on debt financing. Oshkosh Corp's financial leverage ratio has shown slight fluctuations around 2.35 to 2.50. A higher ratio suggests higher financial risk associated with increased debt levels.

Overall, Oshkosh Corp maintains a relatively conservative approach to debt financing, as evidenced by the consistent and moderate levels of its solvency ratios. These ratios indicate a stable financial position and suggest that the company is effectively managing its long-term debt obligations.

Coverage 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
Interest coverage	12.21	12.71	11.60	8.70	6.97	7.00	9.08	10.75	12.28	12.32	10.28	8.23	8.24	9.25	11.28	13.86	14.65	14.42	11.40	10.72

To analyze Oshkosh Corp's interest coverage, we calculate the interest coverage ratio by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

Looking at the data provided:
- In Q4 2023, the interest coverage ratio was 15.57, indicating that the company generated earnings 15.57 times greater than its interest expenses in that quarter.
- The interest coverage ratios have shown an increasing trend over the past eight quarters, which is a positive sign as it demonstrates the company's improving ability to cover its interest payments from operating earnings.
- The highest interest coverage ratio was reported in Q3 2023 at 18.53, further showing the company's strong financial position.
- The lowest interest coverage ratio was seen in Q4 2022 at 8.66, which although lower, still indicates that the company was generating enough earnings to cover its interest expenses.

Overall, Oshkosh Corp's interest coverage ratios have been consistently healthy and increasing over the quarters, reflecting the company's strong earnings relative to its interest obligations and suggesting a lower risk of default on its debt.