Federal Signal Corporation (FSS)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.19	3.72	4.04	4.53	4.91
DOH	days	87.03	98.02	90.45	80.66	74.30

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.19
= 87.03

The Days of Inventory on Hand (DOH) for Federal Signal Corp. has shown fluctuating trends over the past five years. In 2023, the DOH stood at 87.03 days, decreasing from 98.02 days in 2022. This indicates that the company held its inventory for a shorter period in 2023 compared to the previous year.

Despite this decrease, the DOH in 2023 was still higher than the levels observed in 2021 and 2020, which were 90.45 days and 80.66 days, respectively. The highest DOH in the period was recorded in 2019 at 74.30 days.

The declining trend in DOH from 2022 to 2023 suggests that Federal Signal Corp. may be managing its inventory more efficiently by reducing the time it takes to sell its products or raw materials. However, further analysis is needed to understand the specific factors driving these changes and their impact on the company's operations and financial performance.