Fastenal Company (FAST)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,340,200 | 7,272,600 | 7,226,700 | 7,122,900 | 6,965,300 | 6,804,100 | 6,556,500 | 6,284,600 | 6,001,600 | 5,830,100 | 5,690,000 | 5,691,200 | 5,641,200 | 5,560,100 | 5,523,900 | 5,382,800 | 5,323,200 | 5,277,900 | 5,179,500 | 6,347,500 |
| Property, plant and equipment | US$ in thousands | 1,011,100 | 1,011,700 | 1,010,300 | 1,003,500 | 1,010,000 | 1,008,500 | 1,008,700 | 1,008,400 | 1,019,200 | 1,019,200 | 1,015,800 | 1,022,000 | 1,030,700 | 1,023,700 | 1,029,700 | 1,027,700 | 1,023,200 | 997,700 | 975,100 | 943,300 |
| Fixed asset turnover | 7.26 | 7.19 | 7.15 | 7.10 | 6.90 | 6.75 | 6.50 | 6.23 | 5.89 | 5.72 | 5.60 | 5.57 | 5.47 | 5.43 | 5.36 | 5.24 | 5.20 | 5.29 | 5.31 | 6.73 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,340,200K ÷ $1,011,100K
= 7.26
Fastenal Co. has exhibited a consistent and generally increasing trend in fixed asset turnover ratios over the last eight quarters. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue, with higher ratios indicating better utilization of assets.
The ratios have ranged from 6.25 to 7.27, with a gradual upward trend observed. This indicates that Fastenal Co. has been able to generate more sales revenue relative to its investment in fixed assets over time. The highest ratio of 7.27 in Q4 2023 reflects that, on average, the company generated $7.27 in sales for every $1 invested in fixed assets during that quarter.
Overall, the increasing fixed asset turnover ratios suggest that Fastenal Co. has been effectively managing and utilizing its fixed assets to drive its sales revenue, which is a positive sign of operational efficiency and effective asset utilization within the company.
Peer comparison
Dec 31, 2023