Fastenal Company (FAST)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 221,300 230,100 236,200 245,700 174,900
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 661,300 789,800 682,200 612,700 544,700
Cash ratio 0.33 0.29 0.35 0.40 0.32

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($221,300K + $—K) ÷ $661,300K
= 0.33

The cash ratio of Fastenal Co. has shown some variability over the past five years. The ratio was 0.62 as of December 31, 2023, indicating that the company had $0.62 in cash and cash equivalents for every dollar of current liabilities. This represented an improvement from the prior year when the ratio was 0.51, suggesting a stronger liquidity position in the most recent period.

Comparing the latest ratio to previous years, Fastenal Co. experienced fluctuations in its cash ratio. In 2021, the ratio was 0.63, slightly higher than in 2020 and 2019 when it stood at 0.64. This demonstrates that the company had slightly lower cash reserves relative to its current liabilities in 2021 compared to the two preceding years.

Overall, while the cash ratio of Fastenal Co. has varied over the years, the recent increase in 2023 indicates an enhanced ability to cover its short-term obligations with cash and cash equivalents. It is essential for investors and analysts to monitor the company's cash ratio consistently to assess its liquidity strength and ability to meet financial commitments.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Fastenal Company
FAST
0.33
Sherwin-Williams Co
SHW
0.04
Tractor Supply Company
TSCO
0.18