Federal Signal Corporation (FSS)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	533,000	450,200	344,900	288,700	293,600
Revenue	US$ in thousands	1,861,500	1,722,700	1,434,800	1,213,200	1,130,800
Gross profit margin		28.63%	26.13%	24.04%	23.80%	25.96%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $533,000K ÷ $1,861,500K
= 28.63%

Based on the provided data, the gross profit margin of Federal Signal Corporation has exhibited fluctuations over the years as follows:

- As of December 31, 2020, the gross profit margin stood at 25.96%.
- By December 31, 2021, there was a decrease in the gross profit margin to 23.80%.
- In the following year, December 31, 2022, the gross profit margin slightly improved to 24.04%.
- By December 31, 2023, there was a noticeable increase in the gross profit margin to 26.13%.
- The most recent data point, as of December 31, 2024, shows a significant rise in the gross profit margin to 28.63%.

It is important to note that fluctuations in gross profit margin can be indicative of changes in the company's pricing strategy, cost management, product mix, or overall efficiency in generating revenue. The increasing trend observed from 2020 to 2024 may suggest improvements in the company's operational efficiency or product pricing, potentially leading to enhanced profitability. Further analysis of the company's cost structure and revenue sources could provide additional insights into the factors driving these changes in the gross profit margin.