Federal Signal Corporation (FSS)

Total 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
Total assets	US$ in thousands	1,620,500	1,524,300	1,366,100	1,208,800	1,165,500
Total asset turnover		1.06	0.94	0.89	0.94	1.05

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,722,700K ÷ $1,620,500K
= 1.06

The total asset turnover ratio for Federal Signal Corp. has been fluctuating over the past five years. In 2023, the company achieved a total asset turnover of 1.06, indicating that it generated $1.06 in revenue for every $1 of total assets. This represents an improvement compared to the previous year's ratio of 0.94.

In 2021, the total asset turnover was 0.89, the lowest point in the period under review. This suggests that the company's efficiency in utilizing its assets to generate revenue was relatively weaker in that year. However, the ratio improved to 0.94 in 2022 and further increased to 1.06 in 2023, showing a positive trend in asset utilization efficiency.

The total asset turnover ratios of 0.94 and 1.05 in 2020 and 2019, respectively, were relatively close to each other, indicating stable asset turnover performance during those years.

Overall, the trending increase in total asset turnover from 2021 to 2023 signifies an improvement in Federal Signal Corp.'s ability to generate revenue from its total assets, reflecting positively on the company's operational efficiency and potentially increased profitability.