Federal Signal Corporation (FSS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,722,700	1,434,800	1,213,200	1,130,800	1,221,300
Property, plant and equipment	US$ in thousands	190,800	179,300	141,900	106,900	91,900
Fixed asset turnover		9.03	8.00	8.55	10.58	13.29

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,722,700K ÷ $190,800K
= 9.03

The fixed asset turnover ratio for Federal Signal Corp. has shown some fluctuations over the past five years. The ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets.

The trend analysis indicates that the fixed asset turnover ratio has ranged from 4.85 in 2021 to 5.89 in 2019, depicting a decrease in efficiency in generating sales from fixed assets in 2021 compared to the previous year.

In 2022, the ratio slightly improved to 4.98 but then increased significantly to 5.29 in 2023, indicating an improvement in the company's ability to utilize its fixed assets to generate sales revenue efficiently.

Overall, while there have been fluctuations in the fixed asset turnover ratio of Federal Signal Corp. over the past five years, the company has generally performed well in efficiently generating sales from its fixed asset investments, with a notable improvement in 2023 compared to the prior years.