Federal Signal Corporation (FSS)

Financial leverage ratio

		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
Total assets	US$ in thousands	1,765,200	1,733,600	1,691,500	1,651,400	1,620,500	1,654,600	1,660,700	1,584,300	1,524,300	1,465,100	1,443,800	1,425,100	1,366,100	1,313,800	1,289,400	1,266,100	1,208,800	1,224,700	1,211,200	1,227,100
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
Financial leverage ratio		1.49	1.51	1.54	1.58	1.62	1.73	1.80	1.80	1.77	1.77	1.78	1.81	1.74	1.72	1.73	1.76	1.72	1.80	1.85	1.93

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,765,200K ÷ $1,186,100K
= 1.49

The financial leverage ratio of Federal Signal Corporation has been relatively stable over the period analyzed. The ratio decreased from 1.93 on March 31, 2020, to 1.49 on December 31, 2024. This indicates that the company's reliance on debt financing has decreased over time, which may be a positive sign of improved financial stability and reduced financial risk. It is important to note that a decreasing trend in the financial leverage ratio suggests that the company is becoming less leveraged and more financially healthy. However, it is also essential to consider the overall financial strategy and capital structure of the company to fully assess its financial health and performance.