Federal Signal Corporation (FSS)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 2.66 2.83 2.89 2.82 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
Quick ratio 0.38 0.32 0.23 0.23 0.31 0.20 0.25 0.19 0.26 0.20 0.17 0.22 0.23 0.56 0.32 0.33 0.55 0.42 0.46 0.42
Cash ratio 0.38 0.32 0.23 0.23 0.31 0.20 0.25 0.19 0.26 0.20 0.17 0.22 0.23 0.56 0.32 0.33 0.55 0.42 0.46 0.42

Federal Signal Corporation has shown consistent improvement in its current ratio over the past few years, indicating a healthy liquidity position. The current ratio has generally been above 2, which means the company has more than enough current assets to cover its current liabilities.

On the other hand, the quick ratio has been more volatile compared to the current ratio, showing a range of values below 1. This suggests that the company may have some difficulty meeting its short-term obligations using only its most liquid assets. However, the quick ratio has shown some improvement in recent periods which is a positive sign.

The cash ratio, which is the most conservative liquidity measure, has also experienced fluctuations but has generally been around 0.3 or higher. This indicates that the company has a sufficient level of cash and cash equivalents to cover its immediate liabilities.

Overall, based on the liquidity ratios, Federal Signal Corporation appears to have a stable and satisfactory liquidity position, with improvements seen in certain periods.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 90.18 92.42 90.26 90.82 86.92 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

The cash conversion cycle of Federal Signal Corporation has shown some fluctuations over the periods analyzed.

The company's cash conversion cycle measures the time it takes for Federal Signal to convert its investments in inventory and other resources into cash flows from sales. A longer cash conversion cycle indicates that the company takes a longer time to generate cash from its operations.

Based on the provided data:

- The cash conversion cycle ranges from a low of 80.66 days on December 31, 2020, to a high of 105.58 days on June 30, 2023.
- The cycle has generally increased towards the latter part of the period, showing a peak on June 30, 2023, before decreasing again.
- The company's management of inventory turnover, accounts receivable collection, and accounts payable payments appears to have been more efficient in generating cash in the initial periods but less effective in the middle and later periods.

Overall, the fluctuations in the cash conversion cycle may indicate variations in operational efficiency, sales patterns, inventory management, and customer payment behaviors over time. It is important for Federal Signal Corporation to continue monitoring and managing its cash conversion cycle to ensure optimal cash flow and working capital management.