Federal Signal Corporation (FSS)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	203,000	186,500	166,100	158,000	150,900	128,100	124,900	118,000	117,600	132,100	131,500	121,300	124,700	125,600	129,000	145,900	138,700	135,600	127,500	118,300
Revenue (ttm)	US$ in thousands	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	1,221,300	1,186,300	1,146,900	1,113,600
Pretax margin		11.78%	11.20%	10.61%	10.60%	10.52%	9.53%	9.63%	9.33%	9.69%	10.95%	11.07%	10.80%	11.03%	10.92%	10.94%	11.83%	11.36%	11.43%	11.12%	10.62%

December 31, 2023 calculation

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

The pretax margin of Federal Signal Corp. has shown a general upward trend over the past eight quarters, fluctuating between 9.33% and 11.78%. This indicates an improvement in the company's ability to generate profit before accounting for taxes. The increase in pretax margin suggests that the company has been able to effectively manage its operating expenses and generate a higher level of income relative to its revenues. The highest pretax margin of 11.78% was achieved in Q4 2023, indicating strong profitability in that quarter. Overall, the consistent improvement in pretax margin reflects positively on the company's financial performance and efficiency in generating profits.