Federal Signal Corporation (FSS)

Days of inventory on hand (DOH)

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
DOH days 90.94 87.03 98.02 90.45 80.66

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.01
= 90.94

The days of inventory on hand (DOH) for Federal Signal Corporation have shown a fluctuating trend over the past five years. Starting at 80.66 days on December 31, 2020, the DOH increased to 90.45 days by the end of 2021. Subsequently, there was a further rise to 98.02 days by December 31, 2022. However, in the following year, there was a slight decrease in the DOH to 87.03 days. Finally, by December 31, 2024, the DOH had increased again to 90.94 days.

The increasing trend in the DOH indicates that the company may be holding inventory for a longer period before selling it, which could tie up capital and lead to higher storage costs. Conversely, a decreasing trend in DOH can suggest more efficient inventory management.

Overall, a thorough analysis of the reasons behind these fluctuations in the days of inventory on hand would be necessary to evaluate their impact on Federal Signal Corporation's operational efficiency and financial performance.