Fastenal Company (FAST)
Quick ratio
| 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 | US$ in thousands | 255,800 | 292,200 | 255,500 | 237,100 | 221,300 | 297,500 | 243,600 | 239,800 | 230,100 | 231,500 | 247,900 | 234,200 | 236,200 | 250,500 | 321,800 | 333,900 | 245,700 | 331,800 | 201,500 | 160,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,108,600 | 1,200,600 | 1,204,800 | 1,213,200 | 1,087,600 | 1,171,000 | 1,171,600 | 1,149,800 | 1,013,200 | 1,110,600 | 1,103,900 | 1,071,600 | 900,200 | 949,400 | 908,900 | 851,000 | 769,400 | 834,500 | 881,500 | 833,900 |
| Total current liabilities | US$ in thousands | 687,100 | 741,600 | 717,000 | 637,900 | 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 |
| 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 |
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 of Fastenal Company has shown some fluctuations over the periods indicated. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
From March 31, 2020, to June 30, 2022, the quick ratio ranged between 1.59 and 1.93, showing relatively stable liquidity levels. However, in the subsequent periods, the ratio experienced more variability, reaching a low of 1.57 on December 31, 2022, before gradually recovering.
Notably, there was a significant increase in liquidity from March 31, 2023, to September 30, 2023, as the quick ratio surged from 1.61 to 2.20, indicating a substantial improvement in the company's ability to cover its short-term liabilities with its quick assets. This high ratio suggests a strong liquidity position during this period.
Subsequently, the quick ratio decreased slightly but remained above 2 in the following periods, indicating that Fastenal Company continued to maintain a comfortable level of liquidity to meet its short-term obligations with its highly liquid assets.
Overall, the trend in the quick ratio reflects Fastenal Company's ability to manage its short-term financial obligations effectively while also highlighting fluctuations in its liquidity over time. It is important for the company to monitor its liquidity levels closely to ensure it can meet its obligations as they fall due.
Peer comparison
Dec 31, 2024