Federal Signal Corporation (FSS)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	570,200	531,400	431,000	405,500	360,700
Total current liabilities	US$ in thousands	195,800	180,500	170,400	148,400	160,200
Current ratio		2.91	2.94	2.53	2.73	2.25

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $570,200K ÷ $195,800K
= 2.91

The current ratio of Federal Signal Corp. has demonstrated fluctuation over the past five years, ranging from a low of 2.25 in 2019 to a high of 2.94 in 2022. As of December 31, 2023, the current ratio stood at 2.91, indicating that the company had $2.91 in current assets to cover each dollar of current liabilities. A current ratio greater than 1.0 generally suggests that a company has sufficient current assets to meet its short-term obligations.

The upward trend in the current ratio from 2019 to 2022 may indicate improvements in the company's liquidity position and its ability to meet its short-term financial obligations. However, the slight decrease in the current ratio from the previous year (2022) to 2023 could be a sign that the company's liquidity position has slightly weakened.

Overall, Federal Signal Corp.'s current ratio remains above 2.0, which is considered a healthy level and indicates the company's ability to comfortably cover its short-term liabilities using its current assets. It is important for investors and stakeholders to continue monitoring the company's liquidity position to ensure its financial health and stability.