Federal Signal Corporation (FSS)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,272,500	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	898,500	873,000	846,600	823,100
Inventory	US$ in thousands	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	182,900	189,100	173,500	169,000
Inventory turnover		4.19	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	4.91	4.62	4.88	4.87

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,272,500K ÷ $303,400K
= 4.19

Federal Signal Corp.'s inventory turnover has experienced fluctuations over the past eight quarters. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.

In Q4 2023, the inventory turnover ratio improved to 4.19 compared to the previous quarters, suggesting that Federal Signal Corp. is managing its inventory more effectively during this period. This could be attributed to better inventory management practices or strong demand for its products.

Comparing Q4 2023 to the same period in the previous year, the company's inventory turnover has slightly increased from 3.72 to 4.19. This may indicate an improvement in inventory management efficiency over the year.

However, it is essential to monitor this ratio over time to ensure that the company is maintaining or improving its inventory turnover consistently. Fluctuations in inventory turnover could be indicative of changes in demand, production inefficiencies, or inventory management issues that require further investigation.