Federal Signal Corporation (FSS)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,339,700	1,330,900	1,322,000	1,296,900	1,274,100	1,238,400	1,173,300	1,125,100	1,089,900	1,029,000	992,800	969,000	924,500	909,400	889,200	835,900	837,200	851,200	870,800	906,300
Inventory	US$ in thousands	331,000	337,000	326,900	322,700	303,400	330,100	339,400	317,600	292,700	287,500	259,600	249,700	229,100	217,000	203,900	204,600	185,000	196,600	197,500	201,400
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,339,700K ÷ $331,000K
= 4.05

Based on the inventory turnover data provided for Federal Signal Corporation over the period from March 31, 2020, to December 31, 2024, we can observe fluctuations in the company's efficiency in managing its inventory.

The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio typically indicates that a company is efficiently selling its goods and restocking its inventory.

In the case of Federal Signal Corporation, the inventory turnover ratio varied between 3.46 to 4.53 during the period under review. The highest turnover ratio of 4.53 was recorded on December 31, 2020, while the lowest ratio of 3.46 was observed on June 30, 2023.

Overall, the trend in Federal Signal Corporation's inventory turnover ratio shows some fluctuations but generally remains within the range of 3.46 to 4.53, indicating a moderate level of efficiency in managing inventory levels. It is important for the company to monitor this ratio closely to ensure optimal inventory management that balances stock levels with sales demands.