Federal Signal Corporation (FSS)

Current ratio

		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
Total current assets	US$ in thousands	570,200	603,700	606,000	566,300	531,400	510,800	479,900	464,200	431,000	464,000	428,200	404,900	405,500	417,700	406,800	422,900	360,700	380,200	367,600	340,200
Total current liabilities	US$ in thousands	195,800	202,600	198,400	203,100	180,500	181,400	179,700	181,500	170,400	157,500	170,900	166,700	148,400	158,600	160,700	167,100	160,200	164,000	166,000	163,500
Current ratio		2.91	2.98	3.05	2.79	2.94	2.82	2.67	2.56	2.53	2.95	2.51	2.43	2.73	2.63	2.53	2.53	2.25	2.32	2.21	2.08

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 shown a generally increasing trend over the past eight quarters, indicating the company's improving short-term liquidity position. The current ratio has consistently remained above 2, ranging from 2.56 to 3.05 during this period.

A current ratio above 1 implies that the company has more current assets on hand to cover its current liabilities, suggesting a healthy financial position. Federal Signal Corp.'s current ratio consistently exceeding 2 signifies a comfortable level of liquidity, as the company has significantly more current assets than current liabilities.

The upward trend in the current ratio indicates that Federal Signal Corp. has been managing its short-term obligations effectively and has a sound financial strategy in place. This can enhance the company's ability to meet its short-term debt obligations and operational expenses.

Overall, the steady increase in the current ratio of Federal Signal Corp. reflects a positive liquidity position and suggests the company's capability to efficiently manage its working capital.