Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and tele handlers for use in construction, agricultural, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation; and chassis and service parts sales. Its Defense segment provides severe-duty, heavy-and medium-payload tactical trucks for the department of defense, such as hauling tanks, missile systems, ammunition, fuel, troops, and cargo for combat units and light-payload tactical vehicles. The company's Fire & Emergency segment offers custom and commercial fire apparatus; and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also offers snow removal vehicles; broadcast and communication vehicles comprising electronic field production trailers, and satellite and electronic news gathering vehicles; and command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers, portable and stationary concrete batch plants, and refuse collection vehicles to concrete ready-mix and waste services industries. The company was formerly known as Oshkosh Truck Corporation and changed its name to Oshkosh Corporation in February 2008. Oshkosh Corporation was founded in 1917 and is based in Oshkosh, Wisconsin.
Business Analysis of Oshkosh
The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Oshkosh compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Oshkosh to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Oshkosh with an interactive chart.
- Revenue Growth: Oshkosh reported a revenue growth of 3.0% year-on-year during 2016. Automobiles Industry grew at 4.4% in the same period
- COGS share of Revenues: As a percentage of revenue, Oshkosh spent 83.2% of its total revenues on COGS. Automobiles industry average (COGS share of revenue) in the same period was 86.6%
- R&D share of Revenues: Oshkosh R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Oshkosh spent 9.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Automobiles industry average SG&A spending in the same period was 8.0%
- Inventory share of Revenues: As a percentage of revenue, Oshkosh spent 15.6% of its total revenues on Inventories. Automobiles industry average Inventory spending in the same period was 8.0%
- Accounts Payable share of Revenues: As a percentage of revenue, Oshkosh invested 7.4% of its total revenues on Accounts Payable (A/P) Automobiles industry average Accounts Payable investment in the same period was 14.6%
- Accounts Receivable share of Revenues: As a percentage of revenue, Oshkosh invested 16.3% of its total revenues on Accounts Receivable (A/R). Automobiles industry average Accounts Receivable investment in the same period was 47.5%
- PP&E share of Revenues: As a percentage of revenue, Oshkosh invested 7.2% of its total revenues on Property, Plants, and Equipments (PP&E). Automobiles industry average PPE investment in the same period was 34.0%
- Intangibles share of Revenues: As a percentage of revenue, Oshkosh invested 24.8% of its total revenues on Intangibles. Automobiles industry average Intangibles investment in the same period was 2.9%
- Net Margins: Oshkosh Net Margins in the year 2016 were 3.4%. Automobiles industry average Net Margins in the same period were 4.1%
Sector and Industry Association of Oshkosh
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Oshkosh is associated with Industrials Sector Group, Automobiles and Parts Sector, and Automobiles Industry.
Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:
- Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
- Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.
Industry Ranking of Oshkosh
With $6.3 billion revenues, Oshkosh ranked number 6 of all the companies in the US Automobiles industry. There were a total of 18 public companies in the US Automobiles industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Automobiles industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.