Federal Signal Corporation (FSS)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 216,300 157,400 120,400 100,600 96,200
Total assets US$ in thousands 1,765,200 1,620,500 1,524,300 1,366,100 1,208,800
ROA 12.25% 9.71% 7.90% 7.36% 7.96%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $216,300K ÷ $1,765,200K
= 12.25%

Federal Signal Corporation's return on assets (ROA) has shown a positive trend over the years, increasing from 7.96% in December 2020 to 12.25% in December 2024. This improvement indicates that the company has been more efficient in generating profits relative to its total assets. The steady growth in ROA reflects the effectiveness of the company in utilizing its assets to generate earnings for its shareholders. The substantial increase in ROA in 2024 suggests that Federal Signal Corporation has made significant improvements in asset management and operational efficiency, which bodes well for its financial performance and overall profitability.