Fastenal Company (FAST)
Working capital 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 current assets | US$ in thousands | 3,211,900 | 3,020,900 | 3,124,800 | 2,856,600 | 2,499,600 |
| Total current liabilities | US$ in thousands | 687,100 | 661,300 | 789,800 | 682,200 | 612,700 |
| Working capital turnover | 2.99 | 3.11 | 2.98 | 2.76 | 2.99 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,549,800K ÷ ($3,211,900K – $687,100K)
= 2.99
Fastenal Company's working capital turnover has exhibited some fluctuations over the years. The ratio stood at 2.99 in December 31, 2020, decreased to 2.76 in December 31, 2021, then increased to 2.98 in December 31, 2022, further rising to 3.11 in December 31, 2023, before returning to 2.99 in December 31, 2024.
This metric indicates how efficiently Fastenal is utilizing its working capital to generate sales revenue. A higher turnover ratio suggests that the company is efficiently managing its working capital and generating more sales with the capital invested. However, the fluctuations observed in the ratio suggest some variability in the company's working capital management efficiency over the years.
Fastenal should continue monitoring and evaluating its working capital turnover to ensure effective management of its working capital resources for optimal revenue generation while exploring strategies to maintain or improve this key ratio over time.
Peer comparison
Dec 31, 2024