Fastenal Company (FAST)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,046,700 | 5,971,800 | 5,908,900 | 5,867,800 | 5,828,800 | 5,786,600 | 5,750,700 | 5,657,700 | 5,537,900 | 5,406,300 | 5,216,200 | 5,008,200 | 4,798,800 | 4,661,700 | 4,550,100 | 4,552,900 | 4,510,600 | 4,453,500 | 4,426,500 | 4,327,700 |
| Inventory | US$ in thousands | 1,645,000 | 1,559,500 | 1,504,600 | 1,496,300 | 1,522,700 | 1,513,800 | 1,565,400 | 1,651,900 | 1,708,000 | 1,678,100 | 1,665,200 | 1,600,800 | 1,523,600 | 1,401,100 | 1,327,900 | 1,305,300 | 1,337,500 | 1,342,600 | 1,401,500 | 1,345,500 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,046,700K ÷ $1,645,000K
= 3.68
The inventory turnover ratio for Fastenal Company has shown consistency over the past few years, with slight fluctuations observed on a quarterly basis. The ratio ranged from 3.13 to 3.93 during the period from March 31, 2020, to December 31, 2024. It peaked at 3.93 on June 30, 2024, and experienced a slight decrease in the subsequent quarters.
Generally, a higher inventory turnover ratio is considered favorable as it indicates that the company is efficiently managing its inventory by selling and replenishing it quickly. Fastenal Company's ratios consistently above 3 suggest that the company is effectively moving its inventory, typically within a few months.
Furthermore, the overall trend of the inventory turnover ratio is relatively stable, with no significant outliers or drastic deviations from the average ratio observed. This stability indicates that Fastenal Company has a consistent approach to managing its inventory levels, ensuring a balance between maintaining sufficient stock and avoiding excessive holding costs.
In conclusion, based on the inventory turnover ratio data provided, Fastenal Company demonstrates a consistent and efficient management of its inventory, which is essential for maintaining a healthy cash flow and optimizing profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024