Federal Signal Corporation (FSS)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,861,500	1,722,700	1,434,800	1,213,200	1,130,800
Property, plant and equipment	US$ in thousands	—	—	179,300	280,100	106,900
Fixed asset turnover		—	—	8.00	4.33	10.58

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,861,500K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. For Federal Signal Corporation, the fixed asset turnover ratio has shown fluctuations over the years.

In 2020, the fixed asset turnover ratio was recorded at an impressive 10.58, indicating that the company generated $10.58 in sales for every dollar invested in fixed assets. This high ratio suggests efficient utilization of fixed assets to drive revenue.

However, in 2021, the ratio decreased to 4.33, which could indicate either a decrease in sales or an increase in the value of fixed assets. The lower ratio suggests a less efficient use of fixed assets during the year.

By 2022, the fixed asset turnover ratio improved to 8.00, indicating that the company had increased its efficiency in utilizing fixed assets to generate revenue. This improvement is a positive sign for the company's overall operational performance.

Unfortunately, the data for 2023 and 2024 is not available (indicated by "—"), making it difficult to assess how the company's fixed asset turnover ratio has evolved in those years.

Overall, it is important for Federal Signal Corporation to consistently monitor and manage its fixed asset turnover ratio to ensure optimal utilization of assets and maximize revenue generation.