Federal Signal Corporation (FSS)

Liquidity ratios

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
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
Quick ratio 1.26 1.26 1.22 1.13 1.23 1.13 1.12 1.08 1.03 1.45 1.18 1.15 1.41 1.33 1.24 1.26 1.03 1.09 1.11 0.99
Cash ratio 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 0.20 0.22 0.23 0.14

Federal Signal Corp. has shown a generally positive trend in its liquidity ratios over the past eight quarters.
The current ratio has been stable, ranging from 2.56 to 3.05, indicating that the company has consistently had more than enough current assets to cover its current liabilities.
The quick ratio, which excludes inventory from current assets, has also remained relatively stable between 1.18 and 1.36. This suggests that the company can cover its short-term obligations without relying on selling inventory.
The cash ratio, which is a more stringent measure of liquidity, has fluctuated between 0.28 and 0.41, showing that the company has maintained some cash reserves to cover immediate liabilities.
Overall, Federal Signal Corp.'s liquidity ratios indicate that the company has been managing its short-term obligations effectively and has a solid financial position to meet its liquidity needs.


Additional liquidity measure

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
Cash conversion cycle days 107.35 119.74 123.70 118.95 117.99 119.43 114.63 108.80 105.78 103.36 100.23 102.53 99.15 99.82 90.92 91.54 88.00 93.43 90.49 88.31

The cash conversion cycle of Federal Signal Corp. has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 107.35 days, indicating a relatively efficient management of cash and working capital during that period. This was an improvement compared to the previous quarter (Q3 2023) where the cycle was 119.74 days.

However, in Q2 and Q1 of 2023, the cash conversion cycle increased to 123.70 days and 118.95 days respectively, suggesting a slowdown in the company's ability to convert its investments in inventory and accounts receivable into cash within a given period.

In comparison to the same quarter in the previous year, the cash conversion cycle in Q4 2022 was slightly lower at 117.99 days while the cycle in Q3 2022 was 119.43 days. The cycle improved in Q2 2022 to 114.63 days and further decreased to 108.80 days in Q1 2022, indicating better cash management in those quarters.

Overall, Federal Signal Corp. should continue monitoring its cash conversion cycle closely and aim to reduce it where possible to improve its cash flow efficiency and working capital management.