Fastenal Company (FAST)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.67 | 4.40 | 4.39 | 4.83 | 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 |
| Quick ratio | 1.99 | 2.01 | 2.04 | 2.27 | 1.98 | 2.20 | 1.92 | 1.61 | 1.57 | 1.67 | 1.59 | 1.75 | 1.67 | 1.81 | 1.89 | 1.79 | 1.66 | 1.93 | 1.72 | 1.71 |
| Cash ratio | 0.37 | 0.39 | 0.36 | 0.37 | 0.33 | 0.45 | 0.33 | 0.28 | 0.29 | 0.29 | 0.29 | 0.31 | 0.35 | 0.38 | 0.49 | 0.50 | 0.40 | 0.55 | 0.32 | 0.28 |
Fastenal Company's current ratio has been relatively stable over the past few years, ranging from a high of 4.83 on March 31, 2024, to a low of 3.66 on March 31, 2023. This indicates that the company has consistently maintained a strong ability to meet its short-term obligations with its current assets.
In terms of the quick ratio, Fastenal Company's liquidity position has shown some fluctuations but generally remained above 1, indicating a healthy ability to cover its current liabilities with its most liquid assets. The ratio peaked at 2.27 on March 31, 2024, and hit a low of 1.57 on December 31, 2022.
The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, has also remained within a reasonable range. The ratio varied from 0.49 on June 30, 2021, to 0.28 on March 31, 2020, showing that Fastenal has enough cash on hand to cover its short-term obligations.
Overall, Fastenal Company's liquidity ratios suggest a strong financial position, with the ability to meet its short-term obligations comfortably and maintain adequate liquidity levels to support its operations.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 135.54 | 135.46 | 134.18 | 135.93 | 132.90 | 136.90 | 141.90 | 148.28 | 148.86 | 154.16 | 157.56 | 157.78 | 152.90 | 149.03 | 145.89 | 141.98 | 141.26 | 147.57 | 157.81 | 152.14 |
The cash conversion cycle of Fastenal Company has demonstrated fluctuation over the analyzed period. Starting at 152.14 days on March 31, 2020, it increased to 157.81 days by June 30, 2020, before gradually decreasing to 132.90 days by December 31, 2023. This downward trend continued into March 31, 2024, where the cycle stood at 135.93 days.
From a peak of 157.81 days on June 30, 2020, the cash conversion cycle saw a significant decline to 134.18 days by June 30, 2024, indicating more efficiency in managing cash, inventory, and receivables during this period.
The average cash conversion cycle appears to have improved overall, with occasional fluctuations reflecting changes in cash management processes and operational efficiency. This trend suggests that Fastenal Company has made efforts to streamline its working capital management, which can positively impact the company's liquidity position and operational performance in the long run.