Federal Signal Corporation (FSS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 26.13% | 25.66% | 25.07% | 24.50% | 24.04% | 23.48% | 23.43% | 23.37% | 23.80% | 24.63% | 25.16% | 25.60% | 25.96% | 26.01% | 26.17% | 26.53% | 26.43% | 26.41% | 26.18% | 26.09% |
| Operating profit margin | 13.03% | 12.49% | 11.82% | 11.53% | 11.21% | 10.73% | 10.73% | 10.39% | 10.77% | 11.14% | 11.29% | 11.30% | 11.62% | 11.65% | 11.75% | 12.45% | 12.04% | 12.15% | 11.85% | 11.47% |
| 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% |
| Net profit margin | 9.14% | 8.74% | 8.56% | 8.54% | 8.39% | 7.83% | 7.92% | 7.82% | 8.29% | 8.88% | 8.69% | 8.46% | 8.51% | 8.68% | 8.73% | 9.27% | 8.88% | 9.37% | 9.11% | 8.85% |
Federal Signal Corp.'s profitability ratios have shown improvement over the quarters. The gross profit margin for the most recent quarter stood at 26.13%, indicating the company retains a significant portion of its revenue after accounting for the cost of goods sold. This has been gradually increasing from 24.04% in Q4 2022, reflecting efficient cost management.
The operating profit margin, which measures the company's ability to generate profit from its core operations, has also shown an upward trend, reaching 13.06% in Q4 2023 compared to 11.17% in Q4 2022. This suggests that Federal Signal Corp. is becoming more effective in controlling its operating expenses.
The pretax margin, indicating the company's profitability before taxes, has improved steadily, reaching 11.78% in Q4 2023 from 10.52% in Q4 2022. This signifies that Federal Signal Corp. has been able to increase its profitability while also managing its tax obligations effectively.
Lastly, the net profit margin, which reveals the percentage of revenue that translates into net income, has also seen an uptick, reaching 9.14% in Q4 2023, compared to 8.39% in Q4 2022. This indicates that the company is generating more bottom-line profit for every dollar of revenue generated.
Overall, Federal Signal Corp.'s profitability ratios demonstrate a positive trend, showcasing improved efficiency in cost management, operational performance, and overall profitability across the quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.71% | 8.80% | 8.07% | 8.04% | 7.90% | 7.19% | 7.11% | 6.94% | 7.36% | 8.16% | 8.01% | 7.50% | 7.96% | 8.16% | 8.50% | 9.32% | 9.31% | 9.48% | 9.54% | 9.21% |
| Return on total capital | 22.23% | 21.58% | 19.86% | 19.47% | 18.72% | 16.33% | 16.12% | 15.58% | 15.57% | 17.84% | 18.24% | 17.59% | 18.57% | 19.40% | 20.78% | 24.10% | 22.85% | 23.80% | 23.41% | 23.18% |
| Return on equity (ROE) | 15.71% | 15.23% | 14.51% | 14.43% | 13.99% | 12.72% | 12.69% | 12.55% | 12.83% | 14.00% | 13.85% | 13.20% | 13.70% | 14.70% | 15.72% | 17.98% | 16.91% | 18.40% | 18.01% | 17.98% |
Federal Signal Corp. has shown improving profitability over time, as seen in its profitability ratios. The operating return on assets (Operating ROA) has been consistently increasing quarter over quarter, indicating that the company is generating more operating income for each dollar of assets. Similarly, the Return on Assets (ROA) has also been on an upward trend, reflecting the company's ability to generate profit from its total assets.
The Return on Total Capital and Return on Equity (ROE) have also shown a positive trajectory, demonstrating that Federal Signal Corp. is effectively utilizing both its total capital and shareholders' equity to generate returns. The higher returns on equity suggest that the company is efficiently leveraging shareholder funds to generate profits.
Overall, the profitability ratios of Federal Signal Corp. paint a picture of a company that is effectively managing its assets and capital structure to generate increasing returns for its investors.