Federal Signal Corporation (FSS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,722,700 | 1,434,800 | 1,213,200 | 1,130,800 | 1,221,300 |
| Receivables | US$ in thousands | 186,200 | 173,800 | 136,000 | 127,000 | 134,200 |
| Receivables turnover | 9.25 | 8.26 | 8.92 | 8.90 | 9.10 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,722,700K ÷ $186,200K
= 9.25
The receivables turnover ratio for Federal Signal Corp. has shown fluctuation over the past five years. The ratio was 9.25 in 2023, indicating that the company collected its accounts receivable approximately 9.25 times during the year. This represents an increase from the previous year's ratio of 8.26. While receivables turnover was higher in 2023 compared to 2022, it was slightly lower than the ratio of 9.10 in 2019.
Overall, the trend in receivables turnover for Federal Signal Corp. appears to show some variability but remains relatively stable, indicating that the company is effectively managing its accounts receivable by collecting them in a timely manner. This steady turnover of receivables reflects positively on the company's liquidity and cash flow management.
Peer comparison
Dec 31, 2023