Federal Signal Corporation (FSS)

Return on assets (ROA)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands 157,400 120,400 100,600 96,200 108,500
Total assets US$ in thousands 1,620,500 1,524,300 1,366,100 1,208,800 1,165,500
ROA 9.71% 7.90% 7.36% 7.96% 9.31%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $157,400K ÷ $1,620,500K
= 9.71%

Federal Signal Corp.'s return on assets (ROA) has exhibited fluctuations over the past five years. The ROA increased to 9.71% in 2023 from 7.90% in 2022, demonstrating improved efficiency in generating profits from its assets. However, this level is slightly below the highest ROA of 9.31% achieved in 2019. Despite these variations, Federal Signal Corp. consistently maintains a positive ROA, indicating effective asset utilization to generate earnings for shareholders. The upward trend in ROA from 2021 to 2023 suggests the company's enhanced operational performance and financial health.