Fastenal Company (FAST)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,046,700 | 5,828,700 | 5,537,700 | 4,804,300 | 4,516,000 |
| Inventory | US$ in thousands | 1,645,000 | 1,522,700 | 1,708,000 | 1,523,600 | 1,337,500 |
| Inventory turnover | 3.68 | 3.83 | 3.24 | 3.15 | 3.38 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,046,700K ÷ $1,645,000K
= 3.68
Fastenal Company's inventory turnover has shown fluctuations over the period under review. The inventory turnover ratio, which measures how efficiently the company manages its inventory, decreased from 3.38 in 2020 to 3.15 in 2021. However, there was a slight improvement in 2022, with the ratio increasing to 3.24.
In 2023, there was a significant increase in inventory turnover to 3.83, indicating that Fastenal was able to sell its inventory more frequently during that period. However, in 2024, the inventory turnover ratio decreased slightly to 3.68.
Overall, Fastenal's inventory turnover has remained relatively stable over the past five years, indicating that the company has been managing its inventory efficiently. However, there may be room for improvement in optimizing inventory levels to further enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2024