Fastenal Company (FAST)
Current ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,020,900 | 3,147,600 | 3,137,000 | 3,161,500 | 3,124,800 | 3,195,600 | 3,152,700 | 3,034,000 | 2,856,600 | 2,770,300 | 2,705,300 | 2,614,200 | 2,499,600 | 2,646,700 | 2,606,300 | 2,464,300 | 2,457,200 | 2,500,800 | 2,468,300 | 2,389,200 |
| Total current liabilities | US$ in thousands | 661,300 | 667,900 | 736,600 | 863,200 | 789,800 | 802,600 | 849,000 | 745,500 | 682,200 | 662,500 | 650,200 | 661,200 | 612,700 | 603,000 | 631,300 | 580,400 | 544,700 | 555,100 | 527,900 | 554,600 |
| Current ratio | 4.57 | 4.71 | 4.26 | 3.66 | 3.96 | 3.98 | 3.71 | 4.07 | 4.19 | 4.18 | 4.16 | 3.95 | 4.08 | 4.39 | 4.13 | 4.25 | 4.51 | 4.51 | 4.68 | 4.31 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,020,900K ÷ $661,300K
= 4.57
The current ratio of Fastenal Co. has shown fluctuations over the past eight quarters, ranging from 3.66 to 4.71. The ratio indicates the company's ability to cover its short-term liabilities with its current assets. An increasing trend in the current ratio, as seen in Q2 2023 and Q3 2023, suggests improved liquidity and a stronger ability to meet short-term obligations. However, the ratio experienced a slight decrease in Q4 2023 compared to the previous quarter.
Overall, Fastenal Co. has maintained a healthy current ratio above 3.0 throughout the periods analyzed, indicating a strong liquidity position. This suggests that the company has a sufficient level of current assets to cover its short-term liabilities, providing a buffer in case of unexpected financial needs. Investors and creditors may view this positively as it reflects the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023