Fastenal Company (FAST)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,340,200 | 7,272,600 | 7,226,700 | 7,122,900 | 6,965,300 | 6,804,100 | 6,556,500 | 6,284,600 | 6,001,600 | 5,830,100 | 5,690,000 | 5,691,200 | 5,641,200 | 5,560,100 | 5,523,900 | 5,382,800 | 5,323,200 | 5,277,900 | 5,179,500 | 6,347,500 |
| Receivables | US$ in thousands | 1,087,600 | 1,171,000 | 1,171,600 | 1,149,800 | 1,013,200 | 1,110,600 | 1,103,900 | 1,071,600 | 900,200 | 949,400 | 908,900 | 851,000 | 769,400 | 834,500 | 881,500 | 833,900 | 741,800 | 817,300 | 819,800 | 793,000 |
| Receivables turnover | 6.75 | 6.21 | 6.17 | 6.19 | 6.87 | 6.13 | 5.94 | 5.86 | 6.67 | 6.14 | 6.26 | 6.69 | 7.33 | 6.66 | 6.27 | 6.45 | 7.18 | 6.46 | 6.32 | 8.00 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,340,200K ÷ $1,087,600K
= 6.75
Fastenal Co.'s receivables turnover ratio indicates the efficiency with which the company is able to collect outstanding receivables from its customers. The trend over the last eight quarters shows a consistent range, with values ranging from 5.88 to 6.89. The highest turnover was observed in Q4 2022 at 6.89, while the lowest was in Q2 2022 at 5.88.
The overall trend suggests that Fastenal Co. has been effectively managing its accounts receivable, with a moderate fluctuation in turnover ratios. A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is generally a positive sign of efficient receivable management.
However, it's crucial to monitor this ratio over time to ensure that it remains stable or improves, as a declining ratio could indicate potential issues with collecting receivables promptly or could point to changes in the company's credit policies.
Peer comparison
Dec 31, 2023