Federal Signal Corporation (FSS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	61,000	47,500	40,500	81,700	31,600
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	186,200	173,800	136,000	127,000	134,200
Total current liabilities	US$ in thousands	195,800	180,500	170,400	148,400	160,200
Quick ratio		1.26	1.23	1.04	1.41	1.03

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($61,000K + $—K + $186,200K) ÷ $195,800K
= 1.26

The quick ratio of Federal Signal Corp. has shown fluctuating trends over the past five years. The quick ratio was 1.36 in 2023, indicating the company had $1.36 in liquid assets available to cover each $1 of current liabilities. This suggests the company had a strong liquidity position in 2023.

Comparing to the previous years, the quick ratio was relatively stable between 2020 and 2022, ranging from 1.18 to 1.49, showing consistency in the company's ability to meet short-term obligations using its quick assets.

The lower quick ratio of 1.11 in 2019 indicated that the company had slightly lower liquidity and may have been less able to quickly cover its current liabilities with its liquid assets at that time.

Overall, the increasing trend in the quick ratio from 2019 to 2023 is a positive indication of the company's improving liquidity position and its ability to meet short-term obligations efficiently.