Federal Signal Corporation (FSS)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	642,500	570,200	531,400	431,000	405,500
Total current liabilities	US$ in thousands	241,800	195,800	180,500	170,400	148,400
Current ratio		2.66	2.91	2.94	2.53	2.73

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $642,500K ÷ $241,800K
= 2.66

The current ratio of Federal Signal Corporation has displayed some fluctuation over the past five years, ranging from a low of 2.53 to a high of 2.94. Overall, the current ratio indicates that the company has maintained a healthy ability to meet its short-term obligations with its current assets. Although there was a slight decrease in the current ratio from 2.73 in 2020 to 2.53 in 2021, it showed a recovery and steady improvement in subsequent years, reaching 2.66 in 2024. This indicates that the company has been effectively managing its current assets and liabilities, ensuring it has an adequate buffer to cover its short-term financial commitments. Overall, the current ratio suggests that Federal Signal Corporation is in a stable financial position in terms of liquidity over the period under review.