Federal Signal Corporation (FSS)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,186,100	1,001,900	860,900	784,000	702,100
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,186,100K)
= 0.00

Based on the data provided, Federal Signal Corporation has consistently maintained a debt-to-capital ratio of 0.00 over the past five years, including as of December 31, 2024. This indicates that the company has not used any debt to finance its operations or investments relative to its capital structure during this period.

A debt-to-capital ratio of 0.00 implies that the company's capital structure is predominantly composed of equity rather than debt. This can be perceived positively as it suggests a lower financial risk stemming from debt obligations. However, it is essential to consider that a completely debt-free capital structure may limit the company's ability to leverage financial opportunities and potential tax benefits associated with debt financing.

Overall, Federal Signal Corporation's consistent 0.00 debt-to-capital ratio demonstrates a conservative approach to capital structure management, emphasizing financial stability and potentially appealing to investors seeking lower risk profiles.