Fastenal Company (FAST)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.68 | 3.83 | 3.93 | 3.92 | 3.83 | 3.82 | 3.67 | 3.42 | 3.24 | 3.22 | 3.13 | 3.13 | 3.15 | 3.33 | 3.43 | 3.49 | 3.37 | 3.32 | 3.16 | 3.22 | |
| DOH | days | 99.30 | 95.32 | 92.94 | 93.08 | 95.35 | 95.49 | 99.36 | 106.57 | 112.57 | 113.29 | 116.52 | 116.67 | 115.89 | 109.70 | 106.52 | 104.64 | 108.23 | 110.04 | 115.56 | 113.48 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.68
= 99.30
Fastenal Company's Days of Inventory on Hand (DOH) has shown a gradual decreasing trend over the years, indicating improved inventory management efficiency. The DOH decreased from 113.48 days as of March 31, 2020, to 99.30 days as of December 31, 2024. This reduction suggests that Fastenal has been able to turn its inventory into sales at a faster rate.
However, there have been fluctuations in the DOH during the period, with some slight increases observed in certain quarters. Notably, there was a peak in DOH of 116.67 days as of March 31, 2022, but the company managed to bring it down to 92.94 days by June 30, 2024. These fluctuations could be due to changes in demand patterns, inventory management strategies, or supply chain disruptions.
Overall, the decreasing trend in DOH is positive, as it indicates that Fastenal has been effectively managing its inventory levels to meet customer demand efficiently. This trend suggests that the company has been successful in optimizing its inventory turnover, potentially leading to cost savings and improved cash flow management. Tracking DOH over time can provide insights into Fastenal's inventory management effectiveness and operational performance.
Peer comparison
Dec 31, 2024