Federal Signal (FRA:FSG) Inventory Turnover : 0.99 (As of Mar. 2024)

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What is Federal Signal Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Federal Signal's Cost of Goods Sold for the three months ended in Mar. 2024 was €284 Mil. Federal Signal's Average Total Inventories for the quarter that ended in Mar. 2024 was €288 Mil. Federal Signal's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.99.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Federal Signal's Days Inventory for the three months ended in Mar. 2024 was 92.33.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Federal Signal's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.74.

Federal Signal Inventory Turnover Historical Data

The historical data trend for Federal Signal's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Federal Signal Inventory Turnover Chart

Federal Signal Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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5.34

4.35

4.61

4.30

4.21

Federal Signal Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															0.94	0.98	0.99	1.03	0.99

Federal Signal Inventory Turnover Calculation

Federal Signal's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1166.883	/ (	(276.309	+	278.218)	/	2 )
=	1166.883	/	277.2635
=	4.21

Federal Signal's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	284.188	/ (	(278.218	+	296.884)	/	2 )
=	284.188	/	287.551
=	0.99

Federal Signal (FRA:FSG) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Federal Signal's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	287.551	/	284.188	*	365 / 4
	=	92.33

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Federal Signal's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	287.551	/	390.908
	=	0.74

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Federal Signal Inventory Turnover Related Terms

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Federal Signal (FRA:FSG) Business Description

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FSS:USA

Address

1415 West 22nd Street, Suite 1100, Oak Brook, IL, USA, 60523

Website

https://www.federalsignal.com

Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance waterblasting equipment, dump truck bodies and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.