Federal Signal Corporation (FSS)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	283,100	274,500	261,100	238,600	222,900	208,000	185,000	171,800	160,800	144,300	139,100	131,400	130,700	134,400	134,100	126,900	131,400	134,000	138,600	153,600
Revenue (ttm)	US$ in thousands	1,861,500	1,837,900	1,810,100	1,762,100	1,722,700	1,665,800	1,565,800	1,490,100	1,434,800	1,344,700	1,296,600	1,264,600	1,213,200	1,206,600	1,188,100	1,123,500	1,130,800	1,150,400	1,179,400	1,233,600
Operating profit margin		15.21%	14.94%	14.42%	13.54%	12.94%	12.49%	11.82%	11.53%	11.21%	10.73%	10.73%	10.39%	10.77%	11.14%	11.29%	11.30%	11.62%	11.65%	11.75%	12.45%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $283,100K ÷ $1,861,500K
= 15.21%

Federal Signal Corporation's operating profit margin has shown fluctuations over the past few years, ranging from 10.39% as of March 31, 2022, to a peak of 15.21% as of December 31, 2024. The trend indicates a general improvement in operating efficiency and profitability during this period.

The improvement in the operating profit margin signifies that the company has been able to effectively control its operating expenses relative to its revenues. This can result from various factors such as cost-cutting measures, operational efficiencies, or pricing strategies that increase profitability.

It is important to note that while the operating profit margin has generally been increasing, there have been minor fluctuations in some periods, indicating potential challenges or changes in the company's operational environment. Analyzing the reasons behind these fluctuations can provide insights into the company's performance and future prospects.

Overall, the upward trend in Federal Signal Corporation's operating profit margin demonstrates a positive trajectory in its operational performance and financial health. Investors and stakeholders may view this trend favorably as it indicates the company's ability to generate profits from its core business activities.