Federal Signal Corporation (FSS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.62 | 1.77 | 1.74 | 1.72 | 1.82 |
Federal Signal Corp. has shown a consistent improvement in its solvency ratios over the past five years. The debt-to-assets ratio has decreased from 0.19 in 2019 to 0.18 in 2023, indicating the company's ability to finance its assets with a lower level of debt. Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a downward trend, signaling a reduction in the company's reliance on debt to finance its operations.
Moreover, the financial leverage ratio has decreased from 1.82 in 2019 to 1.62 in 2023, demonstrating the company's improved ability to meet its financial obligations using equity rather than debt. This indicates a stronger financial position and lower financial risk for Federal Signal Corp.
Overall, the solvency ratios of Federal Signal Corp. suggest that the company's financial structure has improved over the years, with a decreasing dependency on debt for financing its operations and a stronger equity base.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 11.30 | 15.65 | 27.13 | 22.88 | 18.56 |
Federal Signal Corp. has displayed a consistently healthy interest coverage ratio over the past five years, indicating its strong ability to cover interest payments on its outstanding debt. The interest coverage ratio has ranged from 11.42 to 28.58 during this period, with higher values suggesting a greater capacity to meet interest obligations. The company's ability to generate earnings relative to its interest expenses has improved over time, as seen by the upward trend in the ratio from 2019 to 2021. This trend indicates that Federal Signal Corp. has maintained a stable financial position with respect to its debt servicing capabilities.