Federal Signal Corporation (FSS)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	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	108,500	111,200	104,500	98,600
Total stockholders’ equity	US$ in thousands	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	641,600	604,200	580,100	548,400
ROE		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%	16.91%	18.40%	18.01%	17.98%

December 31, 2023 calculation

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

The return on equity (ROE) for Federal Signal Corp. has been relatively stable and showing a positive trend over the past eight quarters, ranging from 12.55% to 15.71%. This indicates that the company is generating a favorable return for its shareholders based on the equity invested in the business. The consistent improvement in ROE suggests that Federal Signal Corp. is effectively utilizing its equity to generate profits.

The increasing trend in ROE from Q1 2022 to Q4 2023 indicates that the company's profitability and efficiency in generating returns from equity have been steadily improving. This could be attributed to effective management of assets, control of expenses, or growth in revenue streams.

The average ROE of around 14.5% over the period suggests that Federal Signal Corp. is performing well in generating returns for its equity holders compared to the industry average. Investors may view this as a positive sign of the company's financial health and competitive performance in the market.

Overall, the consistent increase in ROE for Federal Signal Corp. indicates that the company is making sound financial decisions and efficiently using its equity to drive profitability. Investors may view this as a positive indicator of the company's financial strength and potential for future growth.