Federal Signal Corporation (FSS)
Activity ratios
Short-term
Turnover ratios
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.65 | 4.38 | 4.52 | 4.59 | 4.60 | 4.15 | 3.84 | 4.10 | 4.09 | 4.08 | 4.32 | 4.47 | 4.66 | 3.94 | 4.62 | 4.72 | 4.40 | 4.44 | 4.79 | 4.82 |
Federal Signal Corporation's inventory turnover ratio has shown a gradual decline from 4.50 in March 2020 to 4.05 in December 2024. This indicates that the company is taking longer to sell its inventory over time.
The receivables turnover ratio is not available for the specified periods, suggesting that the company's efficiency in collecting receivables is not provided in the data.
Similarly, the payables turnover ratio is not available in the data, so the efficiency of the company in paying its suppliers is unknown.
The working capital turnover ratio fluctuates over the years, ranging from 3.84 to 4.79. This ratio measures how effectively the company is using its working capital to generate sales. A higher ratio indicates better utilization of working capital to drive revenues.
Overall, the analysis of Federal Signal Corporation's activity ratios suggests that while the inventory turnover has been decreasing, the working capital turnover has shown some variations, which may require further investigation to understand the company's operational efficiency and liquidity management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Federal Signal Corporation, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measures how many days, on average, a company holds its inventory before selling it.
- Over the period from March 31, 2020, to December 31, 2024, Federal Signal Corporation's DOH ranged from 80.66 days to 105.58 days.
- The trend indicates fluctuations in the management of inventory levels, with the highest DOH observed on June 30, 2023, at 105.58 days.
- A higher DOH may indicate slow-moving inventory or potential issues in demand forecasting, while a lower DOH may suggest efficient inventory management.
2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data provided for the days of sales outstanding for Federal Signal Corporation, which would have indicated how long it takes for the company to collect payments from its customers after making a sale.
- DSO is essential for evaluating the efficiency of the company's credit and collection policies in managing accounts receivable.
- Without this data, it is challenging to assess the effectiveness of Federal Signal Corporation in collecting payments from customers in a timely manner.
3. Number of Days of Payables:
- Similarly, there is no data provided for the number of days of payables for Federal Signal Corporation, which would have shown how long the company takes to pay its suppliers after receiving goods or services.
- The number of days of payables is crucial in understanding the company's liquidity management and relationships with suppliers.
- Without this data, it is difficult to analyze how Federal Signal Corporation manages its payables and cash flow in relation to its operating cycle.
In conclusion, while the days of inventory on hand data provides insights into Federal Signal Corporation's inventory management efficiency, the absence of information on days of sales outstanding and number of days of payables limits a comprehensive assessment of the company's overall activity ratios and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.87 | 8.28 | 8.24 | 8.00 | 7.87 | 7.53 | 7.42 | 4.33 | 10.85 | 4.50 | 9.99 | 10.58 | 10.89 | 11.63 | 12.57 |
| Total asset turnover | 1.05 | 1.06 | 1.07 | 1.07 | 1.06 | 1.01 | 0.94 | 0.94 | 0.94 | 0.92 | 0.90 | 0.89 | 0.89 | 0.92 | 0.92 | 0.89 | 0.94 | 0.94 | 0.97 | 1.01 |
Federal Signal Corporation's fixed asset turnover ratio has fluctuated over the years, indicating varying efficiency in generating sales from its fixed assets. The ratio peaked at 12.57 in March 2020 but declined sharply to 4.50 by June 2021 before gradually recovering to 8.24 by March 2023. However, it decreased again to 4.87 by September 2023, showing some inconsistency in utilizing fixed assets effectively.
On the other hand, the total asset turnover ratio reflects how efficiently the company generates sales revenue from all assets. It started at 1.01 in March 2020, decreased to a low of 0.89 by December 2021, before gradually increasing to 1.07 by June 2024. This indicates that Federal Signal Corporation has improved its overall asset utilization over the years, optimizing its resources to generate more revenue relative to its total assets.
Overall, while the company's fixed asset turnover ratio has been volatile, its total asset turnover ratio demonstrates an upward trend, suggesting enhanced efficiency in utilizing its total assets to drive sales growth over time.