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