Federal Signal Corporation (FSS)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	1,861,500	1,837,900	1,810,100	1,762,100	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
Total current assets	US$ in thousands	642,500	649,200	611,800	595,300	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
Total current liabilities	US$ in thousands	241,800	229,400	211,700	211,000	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
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,861,500K ÷ ($642,500K – $241,800K)
= 4.65

The working capital turnover ratio for Federal Signal Corporation has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a high of 4.82 in March 31, 2020, to a low of 3.84 in June 30, 2023. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

Generally, a higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales. A consistent or increasing trend in this ratio suggests that the company is managing its working capital effectively. Federal Signal Corporation's working capital turnover ratio has displayed a trend of fluctuation but tends to stay within a moderate range between 3.84 and 4.82.

It is important for the company to closely monitor and analyze the factors contributing to the fluctuations in the working capital turnover ratio over time. By doing so, the company can identify areas for improvement in working capital management and aim for a more stable and efficient utilization of its working capital resources to support its operations and growth.