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FSS (Federal Signal) Degree of Operating Leverage : 2.68 (As of Mar. 2025)


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What is Federal Signal Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Federal Signal's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.68. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Federal Signal's Degree of Operating Leverage or its related term are showing as below:

FSS's Degree of Operating Leverage is ranked worse than
68.54% of 2931 companies
in the Industrial Products industry
Industry Median: 1.08 vs FSS: 2.68

Federal Signal Degree of Operating Leverage Historical Data

The historical data trend for Federal Signal's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Federal Signal Degree of Operating Leverage Chart

Federal Signal Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.49 -0.86 1.75 1.90 2.99

Federal Signal Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.10 2.67 3.14 2.99 2.68

Competitive Comparison of Federal Signal's Degree of Operating Leverage

For the Pollution & Treatment Controls subindustry, Federal Signal's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Federal Signal's Degree of Operating Leverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Federal Signal's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Federal Signal's Degree of Operating Leverage falls into.


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Federal Signal Degree of Operating Leverage Calculation

Federal Signal's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 287.3 (Mar. 2025) / 237.4 (Mar. 2024) - 1 )/( 1900.4 (Mar. 2025) / 1762.1 (Mar. 2024) - 1 )
=0.2102/0.0785
=2.68***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Federal Signal  (NYSE:FSS) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Federal Signal Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Federal Signal's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Federal Signal Business Description

Traded in Other Exchanges
Address
1333 Butterfield Road, Downers Grove, IL, USA, 60515
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental Solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.
Executives
Jennifer L Sherman officer: VP, General Counsel & Sec. 1415 W. 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Brenda Reichelderfer director ITT CORPORATION, 4 WEST RED OAK LANE, WHITE PLAINS NY 10604
Mark Weber officer: President-Envir. Products Grp. 1415 W. 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Felix Boeschen officer: VP Strategy/Investor Relations 1415 W. 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Dennis J Martin director 505 WEST FRANKLIN AVENUE, NAPERVILLE IL 60540
Lauren B Elting officer: VP & Corporate Controller 1415 WEST 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Ian A. Hudson officer: V.P. & Corporate Controller 1415 WEST 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Diane Bonina officer: VP, Gen'l Counsel & Secretary 1415 W. 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Shashank Patel director 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Svetlana Vinokur officer: VP, Treasurer & Corp. Develop. 1415 WEST 22ND STREET, SUITE 1100, OAK BROOK IL 60523
William F Owens director C/O KEY ENERGY SERVICES, INC., 1301 MCKINNEY STREET, SUITE 1800, HOUSTON TX 77010
John L Workman director C/O HEALTHSOUTH CORPORATION, ONE HEALTHSOUTH PARKWAY, BIRMINGHAM AL 35243
Richard R Mudge director 1415 WEST 22ND STREET, SUITE 1100, OAK BROOK IL 60523
Lowe Eugene Joseph Iii director 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Patrick E. Miller director C/O COMMERICAL VEHICLE GROUP, INC., 7800 WALTON PARKWAY, NEW ALBANY OH 43054