Fastenal Company (FAST)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,340,200 | 6,965,200 | 6,002,300 | 5,639,000 | 5,321,000 |
| Receivables | US$ in thousands | 1,087,600 | 1,013,200 | 900,200 | 769,400 | 741,800 |
| Receivables turnover | 6.75 | 6.87 | 6.67 | 7.33 | 7.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,340,200K ÷ $1,087,600K
= 6.75
The receivables turnover ratio for Fastenal Co. has exhibited some fluctuations over the past five years. In 2023, the receivables turnover ratio stands at 6.75, representing a slight decline from the previous year's ratio of 6.89. This indicates that Fastenal Co. collected its accounts receivables approximately 6.75 times during the year.
Comparing the current ratio with earlier years, we observe that it is lower than the ratios in 2020 (7.34) and 2019 (7.19), suggesting that the company took slightly longer to collect its receivables in 2023. A lower receivables turnover ratio may imply inefficiencies in collecting outstanding payments or changes in the company's credit policies.
Overall, while the receivables turnover ratio for Fastenal Co. in 2023 is slightly lower than the previous year, further analysis is needed to determine the underlying factors affecting this metric and its implications for the company's financial performance.
Peer comparison
Dec 31, 2023