Federal Signal Corporation (FSS)

Return on assets (ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 216,300 212,700 202,100 181,600 157,400 145,600 134,100 127,300 120,400 105,300 102,700 98,900 100,600 107,200 103,300 95,000 96,200 99,900 103,000 114,400
Total assets US$ in thousands 1,765,200 1,733,600 1,691,500 1,651,400 1,620,500 1,654,600 1,660,700 1,584,300 1,524,300 1,465,100 1,443,800 1,425,100 1,366,100 1,313,800 1,289,400 1,266,100 1,208,800 1,224,700 1,211,200 1,227,100
ROA 12.25% 12.27% 11.95% 11.00% 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%

December 31, 2024 calculation

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

The Return on Assets (ROA) for Federal Signal Corporation has shown a fluctuating trend over the past few years. From March 31, 2020, to December 31, 2021, the ROA decreased gradually from 9.32% to 7.36%. However, starting from March 31, 2022, the ROA started to improve, reaching 12.25% by December 31, 2024.

The ROA is a key financial ratio that indicates the company's efficiency in generating profits from its assets. The increasing trend in ROA from 2022 to 2024 demonstrates that Federal Signal Corporation has been able to enhance its profitability relative to its asset base. This improvement could be a result of effective cost management, operational efficiency, or increased revenue generation.

Overall, the upward trend in ROA signals positive performance and efficiency in asset utilization for Federal Signal Corporation over the period under consideration. Investors and stakeholders may view this improvement in ROA favorably as it indicates the company's ability to generate higher returns on its assets.