Federal Signal Corporation (FSS)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	203,000	150,900	117,600	124,700	138,700
Revenue	US$ in thousands	1,722,700	1,434,800	1,213,200	1,130,800	1,221,300
Pretax margin		11.78%	10.52%	9.69%	11.03%	11.36%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $203,000K ÷ $1,722,700K
= 11.78%

The pretax margin of Federal Signal Corp. has shown variability over the past five years. In 2023, the company's pretax margin increased to 11.78% from 10.52% in 2022, marking a positive trend. This indicates that the company was able to improve its profitability before accounting for taxes in the most recent fiscal year.

Comparing to 2021 and 2020, where the pretax margin was 9.69% and 11.02% respectively, the 2023 figure represents a notable improvement in profitability. However, it is slightly lower than the pretax margin of 11.35% in 2019.

Overall, the company's pretax margin has demonstrated a mix of fluctuations and improvements in recent years, suggesting varying levels of efficiency in generating profits relative to its revenues before the impact of taxes. Further analysis of the company's operational and financial performance may provide insights into the factors driving these fluctuations.