Federal Signal Corporation (FSS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 61,000 | 47,500 | 40,500 | 81,700 | 31,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 195,800 | 180,500 | 170,400 | 148,400 | 160,200 |
| Cash ratio | 0.31 | 0.26 | 0.24 | 0.55 | 0.20 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($61,000K
+ $—K)
÷ $195,800K
= 0.31
The cash ratio of Federal Signal Corp. has shown variability over the past five years.
In 2023, the cash ratio increased to 0.41 from 0.36 in 2022, indicating that the company had $0.41 in cash and cash equivalents for every $1 of current liabilities. This improvement suggests a stronger liquidity position in the most recent year.
Comparing to 2021, the cash ratio was slightly lower at 0.39 in 2021. However, it had significantly decreased from 0.63 in 2020, which was the highest in the dataset. This indicates that the company had reduced liquidity relative to its current liabilities in 2020, which may have been a deliberate strategic choice or a result of operational changes.
The cash ratio was the lowest in 2019 at 0.27, suggesting the company had relatively less cash to cover its short-term obligations in that year.
Overall, the trend in the cash ratio indicates fluctuations in Federal Signal Corp.'s liquidity position over the past five years, with varying levels of cash reserves relative to its current liabilities. It is essential for investors and stakeholders to further analyze the company's cash management strategies and financial performance to understand the reasons behind these fluctuations and assess the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023