Fastenal Company (FAST)
Payables 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 |
| Payables | US$ in thousands | 287,700 | 264,100 | 255,000 | 233,100 | 207,000 |
| Payables turnover | 21.02 | 22.07 | 21.72 | 20.61 | 21.82 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,046,700K ÷ $287,700K
= 21.02
The payables turnover ratio for Fastenal Company has shown relatively stable performance over the past five years. Starting from 2020 at 21.82, the ratio slightly decreased to 20.61 in 2021 before gradually increasing to 21.72 in 2022, 22.07 in 2023, and then slightly decreasing to 21.02 in 2024.
This trend indicates that Fastenal Company is efficiently managing its accounts payables, as higher turnover ratios suggest the company is paying its suppliers more frequently within a specific period. However, the slight fluctuations observed in the ratio may indicate variations in the company's payment terms with suppliers or changes in its purchasing activities.
Overall, the consistent performance and relatively high turnover ratios suggest that Fastenal Company has good control over its payables and is effectively utilizing its working capital to manage its obligations to suppliers.
Peer comparison
Dec 31, 2024