Federal Signal Corporation (FSS)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	281,400	224,500	160,800	130,700	131,400
Revenue	US$ in thousands	1,861,500	1,722,700	1,434,800	1,213,200	1,130,800
Operating profit margin		15.12%	13.03%	11.21%	10.77%	11.62%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $281,400K ÷ $1,861,500K
= 15.12%

The operating profit margin of Federal Signal Corporation has shown a fluctuating trend over the past five years. In December 2020, the operating profit margin was 11.62%, which slightly decreased to 10.77% by December 2021. However, the company was able to improve its profitability in the following years, with the margin increasing to 11.21% in December 2022, 13.03% in December 2023, and reaching the highest point of 15.12% by December 2024.

This upward trend in the operating profit margin indicates that Federal Signal Corporation has been effectively managing its operating expenses relative to its revenue, leading to improved profitability over time. The significant increase in the margin from 2023 to 2024 suggests that the company may have implemented strategies to enhance operational efficiency and boost overall profitability. Overall, the improving trend in the operating profit margin demonstrates the company's ability to generate more profit from its core business operations.