Federal Signal Corporation (FSS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,186,100	1,149,400	1,099,600	1,044,400	1,001,900	955,900	923,900	882,000	860,900	828,000	809,100	787,800	784,000	765,700	746,000	719,600	702,100	679,800	655,400	636,200
ROE		18.24%	18.51%	18.38%	17.39%	15.71%	15.23%	14.51%	14.43%	13.99%	12.72%	12.69%	12.55%	12.83%	14.00%	13.85%	13.20%	13.70%	14.70%	15.72%	17.98%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $216,300K ÷ $1,186,100K
= 18.24%

The return on equity (ROE) of Federal Signal Corporation has shown a fluctuating trend over the past few years, ranging from a high of 18.51% as of September 30, 2024, to a low of 12.55% as of March 31, 2022. Overall, the ROE has generally been above 10%, indicating that the company has been effectively utilizing its equity to generate profit for shareholders.

There was a slight decline in ROE from 2019 to 2020, but the ratio has since shown some improvement, reaching 18.24% as of December 31, 2024. This indicates that the company's profitability relative to its equity has been on an upward trajectory in recent quarters.

It is important for investors to monitor ROE trends as it reflects the efficiency of management in utilizing shareholder equity to generate earnings. Despite some fluctuations, the gradual improvement in ROE over the analyzed period suggests that Federal Signal Corporation has been making positive strides in enhancing shareholder value through efficient capital allocation.