Fastenal Company (FAST)
Total asset 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 |
| Total assets | US$ in thousands | 4,462,900 | 4,548,600 | 4,299,000 | 3,964,700 | 3,799,900 |
| Total asset turnover | 1.64 | 1.53 | 1.40 | 1.42 | 1.40 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,340,200K ÷ $4,462,900K
= 1.64
Total asset turnover measures how efficiently a company generates revenue from its total assets. Fastenal Co. has shown a consistent improvement in total asset turnover over the past five years, with figures ranging from 1.40 to 1.65. This indicates that the company has been increasingly effective in utilizing its assets to generate sales revenue. The upward trend in total asset turnover may suggest improvements in inventory management, sales strategies, or operational efficiency. Overall, the increasing total asset turnover ratio reflects positively on Fastenal Co.'s ability to maximize the productivity of its assets to drive revenue growth.
Peer comparison
Dec 31, 2023