Federal Signal Corporation (FSS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,001,900	860,900	784,000	702,100	641,600
ROE		15.71%	13.99%	12.83%	13.70%	16.91%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $157,400K ÷ $1,001,900K
= 15.71%

Federal Signal Corp.'s return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE stands at 15.71%, representing an improvement compared to the prior year's 13.99%. This increase indicates that the company generated $15.71 in profit for every $100 of shareholder equity in 2023.

Although the ROE in 2023 is higher than in 2022, it is noteworthy that the ROE had been higher in 2019 at 16.91%. This suggests that Federal Signal Corp. was more efficient in generating profits relative to shareholders' equity in 2019 compared to the latest year.

The ROE figures for 2021 and 2020 were 12.83% and 13.70%, respectively, indicating a slightly lower profitability level during those years compared to 2023. However, the 2023 ROE of 15.71% represents a positive performance indicator for the company.

Overall, Federal Signal Corp. has generally maintained a healthy ROE over the past five years, with the latest figure in 2023 showing an improvement. This indicates that the company has been effective in utilizing shareholder equity to generate profits, albeit with fluctuations in performance.