Federal Signal Corporation (FSS)

Working capital 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
Total current assets	US$ in thousands	570,200	603,700	606,000	566,300	531,400	510,800	479,900	464,200	431,000	464,000	428,200	404,900	405,500	417,700	406,800	422,900	360,700	380,200	367,600	340,200
Total current liabilities	US$ in thousands	195,800	202,600	198,400	203,100	180,500	181,400	179,700	181,500	170,400	157,500	170,900	166,700	148,400	158,600	160,700	167,100	160,200	164,000	166,000	163,500
Working capital turnover		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	6.09	5.49	5.69	6.30

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,722,700K ÷ ($570,200K – $195,800K)
= 4.60

The working capital turnover for Federal Signal Corp. has shown consistent fluctuations over the past eight quarters. The ratio ranged from a low of 3.84 in Q2 2023 to a high of 4.60 in Q4 2023. This indicates the efficiency with which the company is utilizing its working capital to generate sales revenue.

A working capital turnover ratio above 1 suggests that the company is efficiently using its working capital to generate sales, and in the case of Federal Signal Corp., the ratios have consistently been above 4. This indicates that the company is effectively utilizing its current assets to support its sales operations.

The decreasing trend from Q1 2023 to Q3 2023 may indicate a less efficient use of working capital during that period. However, the increase in Q4 2023 suggests an improvement in the efficiency of utilizing working capital.

Overall, the analysis of Federal Signal Corp.'s working capital turnover ratio indicates that the company has been effectively managing its working capital to support its sales activities, with some fluctuations in efficiency over the past eight quarters.