Federal Signal Corporation (FSS)

Number of days of payables

		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
Payables turnover		19.08	15.03	13.53	11.77	15.05	12.72	12.74	12.01	14.27	13.86	12.61	11.74	16.22	11.97	11.91	11.62	13.82	12.38	11.87	11.29
Number of days of payables	days	19.13	24.29	26.97	31.01	24.25	28.70	28.64	30.40	25.58	26.33	28.94	31.09	22.50	30.49	30.64	31.41	26.41	29.48	30.74	32.33

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 19.08
= 19.13

To analyze Federal Signal Corp.'s number of days of payables, we look at the trend over the past eight quarters. The number of days of payables represents the number of days it takes for the company to pay its suppliers for goods or services received. A lower number of days of payables indicates that the company is paying its suppliers more quickly, while a higher number suggests that the company is taking longer to settle its payables.

Over the past eight quarters, Federal Signal Corp.'s number of days of payables has shown some fluctuation. In Q1 2023, the company had the highest number of days of payables at 31.01 days, which decreased in Q2 2023 to 26.97 days before further declining to 24.29 days in Q3 2023. This indicates that the company improved its efficiency in paying its suppliers during these quarters.

Comparing the data with the previous year, Federal Signal Corp.'s number of days of payables in Q4 2022 was 24.25 days, which is quite similar to the figure in Q3 2023. However, we see an overall improving trend in the company's payables management compared to the same quarter in the previous year.

The decreasing trend in the number of days of payables over the past few quarters suggests that Federal Signal Corp. is managing its payables more effectively and possibly negotiating better terms with its suppliers. This improved efficiency in paying suppliers can positively impact the company's working capital management and cash flow position. Continued monitoring of this ratio will be essential to assess the company's ability to maintain optimal payment terms with its suppliers.