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