Fastenal Company (FAST)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 221,300 230,100 236,200 245,700 174,900
Short-term investments US$ in thousands
Receivables US$ in thousands 1,087,600 1,013,200 900,200 769,400 741,800
Total current liabilities US$ in thousands 661,300 789,800 682,200 612,700 544,700
Quick ratio 1.98 1.57 1.67 1.66 1.68

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($221,300K + $—K + $1,087,600K) ÷ $661,300K
= 1.98

The quick ratio of Fastenal Co. has shown some fluctuations over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its most liquid assets.

In 2023, the quick ratio stands at 2.27, showing an improvement from the previous year. This suggests that the company has $2.27 of liquid assets available to cover each dollar of current liabilities, indicating a strong ability to meet short-term obligations without relying heavily on inventory.

In 2022, the quick ratio was at 1.79, which indicates a slight decrease in liquidity compared to the previous year. This may suggest that the company might have faced some challenges in meeting short-term obligations with available liquid assets.

The quick ratio was slightly higher in 2021 at 1.95, indicating an improvement in liquidity compared to the previous year. This suggests that the company had a better ability to cover its short-term liabilities with liquid assets.

In 2020 and 2019, the quick ratios were 1.90 and 2.00, respectively. These ratios show a stable liquidity position over these years, with the company having adequate liquid assets to cover its short-term obligations.

Overall, the trend in Fastenal Co.'s quick ratio shows some variability, but the company generally maintains a healthy liquidity position, with varying levels of ability to meet short-term obligations with its liquid assets over the years.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Fastenal Company
FAST
1.98
Sherwin-Williams Co
SHW
0.41
Tractor Supply Company
TSCO
0.18