Federal Signal Corporation (FSS)

Quick 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
Cash	US$ in thousands	61,000	41,000	48,800	38,400	47,500	35,500	31,200	39,200	40,500	88,000	54,500	54,800	81,700	66,200	73,600	69,400	31,600	35,900	38,600	22,700
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	-500	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	186,200	213,300	193,400	191,600	173,800	170,000	169,900	156,400	136,000	140,800	148,000	136,300	127,000	145,000	125,300	141,400	134,200	142,500	145,900	139,400
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
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

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 a consistent trend of improvement over the past eight quarters. The quick ratio measures the company's ability to meet short-term obligations using its most liquid assets, excluding inventory.

The quick ratio has increased from 1.18 in Q1 2022 to 1.36 in Q4 2023. This indicates that the company has strengthened its liquidity position and is better equipped to cover its short-term liabilities with its quick assets.

The quick ratio has generally remained above 1, which signifies that Federal Signal Corp. has an adequate level of liquid assets to cover its current liabilities. A quick ratio above 1 is generally considered a positive sign of financial health, as it indicates that the company can meet its short-term obligations without relying heavily on inventory.

Overall, the improving trend in Federal Signal Corp.'s quick ratio indicates a positive liquidity position and suggests that the company is effectively managing its short-term financial obligations.