Federal Signal Corporation (FSS)

Quick ratio

		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	US$ in thousands	91,100	73,700	48,600	48,900	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	-500	—	—	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	241,800	229,400	211,700	211,000	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
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

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($91,100K + $—K + $—K) ÷ $241,800K
= 0.38

The quick ratio of Federal Signal Corporation has fluctuated over the past few years, ranging from a low of 0.17 to a high of 0.56. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current quick assets.

The quick ratio for Federal Signal Corporation appears to be relatively low, with values consistently below 1. This suggests that the company may have limited liquidity to cover its short-term obligations without relying on selling inventory or obtaining external financing. A declining trend in the quick ratio could indicate potential financial stress, as it may become increasingly challenging for the company to meet its short-term obligations using its quick assets alone.

Overall, Federal Signal Corporation's quick ratio indicates a need for ongoing monitoring of its liquidity position to ensure that it can meet its short-term financial obligations effectively.