Federal Signal Corporation (FSS)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,001,900	860,900	784,000	702,100	641,600
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,001,900K)
= 0.00

The debt-to-capital ratio of Federal Signal Corp. has shown fluctuations over the past five years, ranging from 0.23 to 0.30. In general, a lower ratio indicates a lower level of financial risk, as it suggests that the company relies less on debt to finance its operations. Conversely, a higher ratio may indicate higher financial risk due to increased reliance on debt.

The decrease in the debt-to-capital ratio from 0.30 in 2022 to 0.23 in 2023 is a positive trend, as it suggests that the company has reduced its debt relative to its overall capital structure. This could indicate improved financial health and lower risk for investors and creditors.

Comparing the 2023 ratio to 2019, there has been a slight decrease from 0.26 to 0.23. This trend indicates that the company has maintained a relatively stable debt-to-capital ratio over the past five years, which can be reassuring for stakeholders as it implies consistent management of debt levels.

Overall, while the debt-to-capital ratio for Federal Signal Corp. has fluctuated over the years, the recent decrease in the ratio is a positive sign of improved financial stability and prudent debt management by the company.