Federal Signal Corporation (FSS)

Receivables 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
Revenue (ttm)	US$ in thousands	1,722,700	1,665,800	1,565,800	1,490,100	1,434,800	1,344,700	1,296,600	1,264,600	1,213,200	1,206,600	1,188,100	1,123,500	1,130,800	1,150,400	1,179,400	1,233,600	1,221,300	1,186,300	1,146,900	1,113,600
Receivables	US$ in thousands	186,200	213,300	193,400	191,600	173,800	170,000	169,900	156,400	136,000	140,800	148,000	136,300	127,000	145,000	125,300	141,400	134,200	142,500	145,900	139,400
Receivables turnover		9.25	7.81	8.10	7.78	8.26	7.91	7.63	8.09	8.92	8.57	8.03	8.24	8.90	7.93	9.41	8.72	9.10	8.32	7.86	7.99

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,722,700K ÷ $186,200K
= 9.25

The receivables turnover ratio for Federal Signal Corp. has been relatively stable over the eight quarters presented in the table. The company's ability to convert its accounts receivable into cash has ranged from a low of 7.63 to a high of 9.25 times per year during this period.

Overall, the average receivables turnover ratio appears healthy, indicating that Federal Signal Corp. efficiently collects outstanding customer balances. A higher turnover ratio suggests that the company's credit policies are effective in managing credit risk and ensuring timely collection of receivables.

The trend of the receivables turnover ratio over time can provide insights into the company's liquidity management, credit control, and potential changes in customer payment behavior. It would be beneficial to monitor this ratio to ensure that Federal Signal Corp. maintains a balanced approach in managing its accounts receivable.