Fastenal Company (FAST)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 255,800 | 221,300 | 230,100 | 236,200 | 245,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 687,100 | 661,300 | 789,800 | 682,200 | 612,700 |
| Cash ratio | 0.37 | 0.33 | 0.29 | 0.35 | 0.40 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($255,800K
+ $—K)
÷ $687,100K
= 0.37
The cash ratio of Fastenal Company has shown a downward trend over the past five years, starting at 0.40 on December 31, 2020, and decreasing to 0.37 by December 31, 2024. This indicates that the company's ability to cover its current liabilities with its cash and cash equivalents has slightly improved between 2023 and 2024. However, the overall trend suggests that the company may have been less liquid in the more recent years compared to earlier years. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024