Fastenal Company (FAST)
Payables 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 |
| Payables | US$ in thousands | 287,700 | 301,700 | 292,600 | 276,000 | 264,100 | 275,100 | 262,000 | 266,800 | 255,000 | 277,200 | 291,800 | 289,900 | 233,100 | 256,900 | 236,100 | 215,100 | 207,000 | 210,400 | 194,100 | 212,100 |
| Payables turnover | 21.02 | 19.79 | 20.19 | 21.26 | 22.07 | 21.03 | 21.95 | 21.21 | 21.72 | 19.50 | 17.88 | 17.28 | 20.59 | 18.15 | 19.27 | 21.17 | 21.79 | 21.17 | 22.81 | 20.40 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,046,700K ÷ $287,700K
= 21.02
Fastenal Company's payables turnover has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to the average accounts payable. A higher ratio indicates that the company is paying off its suppliers more frequently.
The payables turnover ratio ranged from a high of 22.81 on June 30, 2020, to a low of 17.28 on March 31, 2022, indicating variations in how Fastenal Company manages its accounts payable over time. The company seemed to maintain a generally stable performance in managing its payables, with the ratio hovering around 20 on average during the period under review.
It is important to note that a high turnover ratio could signify efficient management of payables, but it could also imply that the company is not taking advantage of favorable credit terms. Conversely, a low turnover ratio may suggest that the company is paying its suppliers slowly, potentially leading to strained relationships or missed discounts.
Overall, the fluctuations in Fastenal Company's payables turnover over the years may reflect changes in payment practices, supplier relationships, or operational factors. Further analysis and comparison with industry benchmarks would provide additional insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2024