Federal Signal Corporation (FSS)

Total 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
Total assets	US$ in thousands	1,765,200	1,620,500	1,524,300	1,366,100	1,208,800
Total asset turnover		1.05	1.06	0.94	0.89	0.94

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,861,500K ÷ $1,765,200K
= 1.05

The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. For Federal Signal Corporation, the total asset turnover has fluctuated over the past five years.

In December 2020, the total asset turnover was 0.94, indicating that Federal Signal generated $0.94 in revenue for every $1 of assets. This ratio decreased slightly to 0.89 by December 2021, suggesting a lower efficiency in asset utilization.

However, there was an improvement in asset turnover in the following years. By December 2023, the total asset turnover increased significantly to 1.06, indicating that Federal Signal was generating $1.06 in revenue for each $1 of assets. This improvement continued into December 2024, with a total asset turnover of 1.05.

Overall, the increasing trend in total asset turnover from 2021 to 2024 indicates that Federal Signal Corporation has been more effective in generating revenue relative to its asset base. This improved efficiency in asset utilization is a positive sign for the company’s operational performance and could contribute to potential growth opportunities in the future.