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.

Peer comparison

Dec 31, 2023

Company name

Symbol

ROA

Federal Signal Corporation

FSS

9.71%

Ford Motor Company

1.59%

General Motors Company