Federal Signal Corporation (FSS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,765,200	1,733,600	1,691,500	1,651,400	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
Operating ROA		16.04%	15.83%	15.44%	14.45%	13.76%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $283,100K ÷ $1,765,200K
= 16.04%

Federal Signal Corporation's operating return on assets (operating ROA) has shown a decreasing trend from March 31, 2020, at 12.52% to December 31, 2024, at 16.04%. The operating ROA indicates the company's ability to generate earnings from its operational assets.

The fluctuation in the operating ROA figures over the period may signify changes in the company's operational efficiency and asset utilization. While there was a slight decline in the operating ROA in the early part of the period, starting from March 31, 2022, the trend reversed, showing a steady increase in performance.

The significant increase in operating ROA from September 30, 2023, to December 31, 2024, suggests that Federal Signal Corporation improved its operational effectiveness and efficiency in generating profits relative to its asset base during this period.

Overall, the increasing trend in operating ROA from the latter part of the period indicates positive operational performance and efficiency improvements for Federal Signal Corporation, which could be a result of strategic management decisions and operational enhancements.