Federal Signal Corporation (FSS)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	224,500	160,800	130,700	131,400	147,100
Revenue	US$ in thousands	1,722,700	1,434,800	1,213,200	1,130,800	1,221,300
Operating profit margin		13.03%	11.21%	10.77%	11.62%	12.04%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $224,500K ÷ $1,722,700K
= 13.03%

The operating profit margin of Federal Signal Corp. has shown a generally positive trend over the past five years. The margin increased from 12.25% in 2019 to 13.06% in 2023, indicating improvement in the company's ability to generate profits from its core business operations. This upward trend demonstrates management's effectiveness in controlling operating expenses relative to revenues. However, it is worth noting that there was a slight dip in 2022 compared to 2021, but the margin rebounded and surpassed the 2021 level in 2023. Overall, the company has been able to maintain a healthy level of operating profitability over the analyzed period, which is a positive indicator of its operational efficiency and financial performance.