Federal Signal Corporation (FSS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,186,100 | 1,001,900 | 860,900 | 784,000 | 702,100 |
| ROE | 18.24% | 15.71% | 13.99% | 12.83% | 13.70% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $216,300K ÷ $1,186,100K
= 18.24%
Federal Signal Corporation's return on equity (ROE) has shown a positive trend over the years, reflecting the company's ability to generate profits from shareholder equity.
The ROE was 13.70% as of December 31, 2020, which decreased slightly to 12.83% by December 31, 2021. However, the ROE started to improve in the following years, reaching 13.99% by December 31, 2022.
The trend continued even more positively, with the ROE increasing to 15.71% by December 31, 2023, and further growing to 18.24% by the end of 2024.
This increase in ROE indicates that Federal Signal Corporation has been effectively utilizing its shareholders' equity to generate higher returns. It suggests that the company's profitability and efficiency in utilizing its resources have been improving over the years, which can be viewed positively by investors and stakeholders.
Peer comparison
Dec 31, 2024