Federal Signal Corporation (FSS)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover 4.05 3.95 4.04 4.02 4.20 3.75 3.46 3.54 3.72 3.58 3.82 3.88 4.04 4.19 4.36 4.09 4.53 4.33 4.41 4.50
DOH days 90.18 92.42 90.26 90.82 86.92 97.29 105.58 103.03 98.02 101.98 95.44 94.06 90.45 87.10 83.70 89.34 80.66 84.30 82.78 81.11

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.05
= 90.18

The days of inventory on hand (DOH) for Federal Signal Corporation have shown fluctuations over the periods analyzed. In general, DOH measures how many days a company takes to sell its entire inventory.

From March 31, 2020, to December 31, 2020, the DOH fluctuated within a relatively narrow range, indicating consistent inventory management. However, from March 31, 2021, to June 30, 2022, the DOH increased steadily from 89.34 days to 95.44 days, suggesting a potential buildup of inventory or slower sales.

The period from September 30, 2022, to March 31, 2024, witnessed more significant fluctuations in DOH, which peaked at 105.58 days on June 30, 2023. This peak might indicate potential inefficiencies in inventory management, such as overstocking or slower inventory turnover.

From September 30, 2023, to December 31, 2024, the DOH decreased gradually, ending at 90.18 days on December 31, 2024. This decline may signify improved inventory control or increased sales efficiency.

Overall, fluctuations in DOH can highlight changes in inventory management practices, potential sales trends, or operational challenges within Federal Signal Corporation. It is essential for the company to continuously monitor and optimize its inventory levels to maintain efficient operations and profitability.