Federal Signal Corporation (FSS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.94 | 87.03 | 98.02 | 90.45 | 80.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 90.94 | 87.03 | 98.02 | 90.45 | 80.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 90.94 + — – —
= 90.94
The cash conversion cycle of Federal Signal Corporation has shown some variability over the past five years. In December 2020, the company's cash conversion cycle was 80.66 days, indicating that it took approximately 80 days to convert raw materials into cash. By the end of December 2021, this cycle had extended to 90.45 days, reflecting a slower conversion process.
Subsequently, the cash conversion cycle continued to increase to 98.02 days by December 2022, suggesting a further delay in the company's ability to convert its resources into cash. However, in December 2023, there was a slight improvement as the cycle decreased to 87.03 days, indicating a more efficient conversion process compared to the preceding year.
By December 2024, the cash conversion cycle stood at 90.94 days, showing a moderate increase from the previous year. Overall, the trend in Federal Signal Corporation's cash conversion cycle implies fluctuations in its operational efficiency and working capital management over the analyzed period.
Peer comparison
Dec 31, 2024