Federal Signal Corporation (FSS)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 224,500 | 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 | 147,100 | 144,100 | 135,900 | 127,700 |
| Total assets | US$ in thousands | 1,620,500 | 1,654,600 | 1,660,700 | 1,584,300 | 1,524,300 | 1,465,100 | 1,443,800 | 1,425,100 | 1,366,100 | 1,313,800 | 1,289,400 | 1,266,100 | 1,208,800 | 1,224,700 | 1,211,200 | 1,227,100 | 1,165,500 | 1,173,600 | 1,095,700 | 1,070,200 |
| Operating ROA | 13.85% | 12.57% | 11.14% | 10.84% | 10.55% | 9.85% | 9.63% | 9.22% | 9.57% | 10.23% | 10.40% | 10.02% | 10.87% | 10.94% | 11.44% | 12.52% | 12.62% | 12.28% | 12.40% | 11.93% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $224,500K ÷ $1,620,500K
= 13.85%
Federal Signal Corp.'s operating return on assets (operating ROA) has shown a consistent upward trend over the past eight quarters. The operating ROA has increased from 9.08% in Q1 2022 to 13.88% in Q4 2023. This indicates that the company has been able to generate higher operating income relative to its total assets over time.
The improvement in operating ROA suggests that Federal Signal Corp. has been able to effectively utilize its assets to generate operating profit. This may be a result of improved operational efficiency, cost management, or revenue growth strategies implemented by the company.
The steady increase in operating ROA is a positive signal for investors and stakeholders, as it indicates that the company is becoming more profitable with its existing asset base. However, it is essential to monitor this trend in the upcoming quarters to assess the sustainability of this performance and to identify any potential risks or challenges that could impact Federal Signal Corp.'s operating ROA in the future.
Peer comparison
Dec 31, 2023