Fastenal Company (FAST)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,549,800 | 7,340,200 | 6,965,200 | 6,002,300 | 5,639,000 |
| Total assets | US$ in thousands | 4,698,000 | 4,462,900 | 4,548,600 | 4,299,000 | 3,964,700 |
| Total asset turnover | 1.61 | 1.64 | 1.53 | 1.40 | 1.42 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,549,800K ÷ $4,698,000K
= 1.61
Fastenal Company's total asset turnover ratio measures how efficiently the company generates revenue from its total assets. The total asset turnover has seen fluctuations over the years as follows:
- In 2020, the total asset turnover was 1.42, indicating that for every dollar of assets held, the company generated $1.42 in revenue.
- By the end of 2021, the total asset turnover decreased slightly to 1.40, suggesting a decreased efficiency in asset utilization for revenue generation.
- In 2022, the total asset turnover ratio improved to 1.53, indicating that the company was able to generate more revenue per dollar of assets compared to the previous year.
- The trend continued to be positive in 2023 as the total asset turnover further increased to 1.64, showcasing improved efficiency in asset utilization for revenue generation.
- However, by the end of 2024, there was a slight decrease in the total asset turnover to 1.61, although it remained relatively high compared to previous years.
Overall, the increasing trend in total asset turnover from 2020 to 2023 suggests that Fastenal Company has been effectively utilizing its assets to generate revenue. However, the slight decrease in 2024 may warrant further analysis to understand the factors influencing this change.
Peer comparison
Dec 31, 2024