Federal Signal Corporation (FSS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,765,200	1,620,500	1,524,300	1,366,100	1,208,800
Operating ROA		15.94%	13.85%	10.55%	9.57%	10.87%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $281,400K ÷ $1,765,200K
= 15.94%

Federal Signal Corporation's operating return on assets (ROA) has shown some fluctuations over the years, as evidenced by the data provided.

In December 2020, the operating ROA was 10.87%, which indicates that the company generated 10.87 cents of operating income for every dollar of assets it had.

Subsequently, in December 2021, the operating ROA decreased to 9.57%, suggesting a decline in the company's efficiency in generating operating profits from its assets.

However, the trend reversed in December 2022, when the operating ROA improved to 10.55%, showing an increase in the company's ability to generate profits from its assets.

The positive trend continued in December 2023, with a significant jump in operating ROA to 13.85%, indicating a substantial improvement in the company's operational efficiency and profitability.

By December 2024, Federal Signal Corporation achieved the highest operating ROA in the period at 15.94%, reflecting a strong performance in generating operating income relative to its asset base.

Overall, the fluctuation in operating ROA over the years suggests that Federal Signal Corporation has experienced varying levels of efficiency in utilizing its assets to generate operating profits, with a notable improvement in recent years.