Federal Signal Corporation (FSS)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	87.03	97.29	105.58	103.03	98.02	101.98	95.44	94.06	90.45	87.10	83.70	89.34	80.66	84.30	82.78	81.11	74.30	79.06	74.80	74.94
Days of sales outstanding (DSO)	days	39.45	46.74	45.08	46.93	44.21	46.14	47.83	45.14	40.92	42.59	45.47	44.28	40.99	46.01	38.78	41.84	40.11	43.84	46.43	45.69
Number of days of payables	days	19.13	24.29	26.97	31.01	24.25	28.70	28.64	30.40	25.58	26.33	28.94	31.09	22.50	30.49	30.64	31.41	26.41	29.48	30.74	32.33
Cash conversion cycle	days	107.35	119.74	123.70	118.95	117.99	119.43	114.63	108.80	105.78	103.36	100.23	102.53	99.15	99.82	90.92	91.54	88.00	93.43	90.49	88.31

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.03 + 39.45 – 19.13
= 107.35

The cash conversion cycle of Federal Signal Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 107.35 days, which was an improvement compared to the previous quarter but still higher than the Q1 2022 figure.

Overall, Federal Signal Corp.'s cash conversion cycle has ranged between 107.35 days and 123.70 days over this period. It is essential for the company to continue monitoring and managing its cash conversion cycle effectively to ensure optimal working capital management. A lower cash conversion cycle indicates that the company is efficiently managing its cash flow, accounts receivable, and inventory, which can lead to improved financial performance and liquidity.