Fastenal Company (FAST)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 255,800 | 221,300 | 230,100 | 236,200 | 245,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,108,600 | 1,087,600 | 1,013,200 | 900,200 | 769,400 |
| Total current liabilities | US$ in thousands | 687,100 | 661,300 | 789,800 | 682,200 | 612,700 |
| Quick ratio | 1.99 | 1.98 | 1.57 | 1.67 | 1.66 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($255,800K
+ $—K
+ $1,108,600K)
÷ $687,100K
= 1.99
The Quick Ratio measures a company's ability to meet its short-term obligations using its most liquid assets. Fastenal Company's Quick Ratio has shown a consistent and healthy trend over the past five years.
As of December 31, 2020, the Quick Ratio stood at 1.66, indicating that Fastenal had $1.66 of liquid assets available to cover each dollar of current liabilities. This improved slightly to 1.67 by December 31, 2021, showing the company's capacity to meet short-term obligations continued to strengthen.
However, by December 31, 2022, the Quick Ratio decreased to 1.57, suggesting a slight decrease in immediate liquidity relative to its current liabilities. Fastenal's liquidity position then significantly improved by December 31, 2023, with a Quick Ratio of 1.98, suggesting a strong ability to cover short-term obligations.
Finally, as of December 31, 2024, Fastenal's Quick Ratio increased slightly to 1.99, indicating that the company maintained a strong liquidity position that exceeded its current liabilities. Overall, Fastenal Company has generally demonstrated a healthy ability to meet its short-term obligations over the years, with some fluctuations in liquidity levels observed.
Peer comparison
Dec 31, 2024