Federal Signal Corporation (FSS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.01 | 4.19 | 3.72 | 4.04 | 4.53 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.65 | 4.60 | 4.09 | 4.66 | 4.40 |
Inventory Turnover Ratio:
The inventory turnover ratio for Federal Signal Corporation has shown a fluctuating trend over the years. It decreased from 4.53 in 2020 to 3.72 in 2022 but then slightly increased to 4.19 in 2023 before dropping to 4.01 in 2024. This indicates that the company is selling its inventory less efficiently in 2022 but managed to improve its inventory turnover in the following years, albeit with some fluctuations.
Receivables Turnover Ratio:
The data provided does not contain information about the receivables turnover ratio for Federal Signal Corporation, which suggests that the company's accounts receivable turnover is not available for analysis. This may be due to the nature of the company's operations or reporting practices.
Payables Turnover Ratio:
Similar to the receivables turnover ratio, the payables turnover ratio data is not available for Federal Signal Corporation. This omission makes it impossible to analyze how efficiently the company is managing its accounts payable.
Working Capital Turnover Ratio:
The working capital turnover ratio for Federal Signal Corporation has remained relatively stable over the years, ranging from 4.09 in 2022 to 4.66 in 2021. This ratio measures how efficiently the company is utilizing its working capital to generate sales. The consistent values suggest that the company has been effectively using its working capital to support its operations and drive revenue generation.
In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Federal Signal Corporation's operational efficiency, the lack of data for the receivables and payables turnover ratios hinders a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.94 | 87.03 | 98.02 | 90.45 | 80.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The analysis of Federal Signal Corporation's activity ratios reveals the following trends:
1. Days of Inventory on Hand:
- The company's days of inventory on hand have shown an increasing trend over the years, from 80.66 days in 2020 to 90.94 days in 2024. This indicates that the company is holding inventory for a longer period before selling it, which may tie up working capital and increase carrying costs.
2. Days of Sales Outstanding (DSO):
- The DSO data is not available for any of the years provided, indicating that information on the average number of days it takes the company to collect revenue from sales customers is not accessible. Without this data, it is challenging to assess the efficiency of Federal Signal Corporation's accounts receivable management.
3. Number of Days of Payables:
- Similarly, the number of days of payables data is not available for any of the years, making it difficult to evaluate how long the company takes to pay its suppliers. A shorter period of payables could indicate better liquidity management, while a longer period may signal liquidity challenges or strained supplier relationships.
In conclusion, while the days of inventory on hand ratio suggests a potential issue with inventory management, the lack of data on DSO and payables hinders a comprehensive analysis of Federal Signal Corporation's overall activity efficiency. Additional information would be needed to provide a more detailed assessment of the company's working capital management and operational effectiveness.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 8.00 | 4.33 | 10.58 |
| Total asset turnover | 1.05 | 1.06 | 0.94 | 0.89 | 0.94 |
The Fixed Asset Turnover ratio for Federal Signal Corporation experienced a significant decrease from 10.58 in 2020 to 4.33 in 2021, indicating that the company's ability to generate sales from its fixed assets declined during this period. However, the ratio improved to 8.00 in 2022, signaling a recovery in the company's efficiency in utilizing its fixed assets to generate revenue. The data for 2023 and 2024 is not available.
In contrast, the Total Asset Turnover ratio remained relatively stable over the years, with a slight decline from 0.94 in 2020 to 0.89 in 2021 before recovering to 0.94 in 2022. The ratio then showed an increase to 1.06 in 2023 and slightly decreased to 1.05 in 2024. This suggests that Federal Signal Corporation was able to generate more sales relative to its total assets in 2023 compared to previous years.
Overall, the trends in these long-term activity ratios indicate fluctuations in the company's efficiency in utilizing both fixed and total assets to generate sales. Further analysis would be required to understand the underlying factors driving these changes and their implications for the company's operational performance and asset management strategies.