Fastenal Company (FAST)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.06% | 45.70% | 46.17% | 46.27% | 45.54% |
| Operating profit margin | 20.00% | 20.83% | 20.87% | 20.28% | 20.25% |
| Pretax margin | 19.98% | 20.74% | 20.67% | 20.12% | 20.09% |
| Net profit margin | 15.24% | 15.74% | 15.60% | 15.41% | 15.23% |
Fastenal Company's profitability ratios show consistent performance over the past five years.
1. Gross Profit Margin: The company's gross profit margin has been relatively stable, with a slight increase from 45.54% in 2020 to 46.27% in 2021, followed by a slight decrease to 45.06% in 2024. This indicates that Fastenal has been effectively managing its cost of goods sold and generating a healthy level of gross profit from its sales.
2. Operating Profit Margin: The operating profit margin has also been consistent, ranging from 20.00% to 20.87% over the period. This shows that Fastenal has efficiently controlled its operating expenses in relation to its revenue, resulting in a stable level of operating profitability.
3. Pretax Margin: The pretax margin has shown a similar trend to the operating profit margin, indicating that the company has been successful in managing both its operating expenses and pre-tax income levels effectively. The margin ranged from 19.98% to 20.74% during the period.
4. Net Profit Margin: Fastenal's net profit margin has remained relatively steady, hovering around the 15% mark throughout the five-year period. This suggests that after accounting for all expenses, including taxes, the company was able to maintain a stable level of net profit as a percentage of its total revenue.
Overall, Fastenal Company has demonstrated consistent profitability performance with efficient cost management and stable profit margins across the board.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 32.14% | 34.25% | 31.96% | 28.32% | 28.80% |
| Return on assets (ROA) | 24.49% | 25.88% | 23.90% | 21.52% | 21.67% |
| Return on total capital | 40.36% | 43.19% | 41.36% | 36.10% | 36.87% |
| Return on equity (ROE) | 31.82% | 34.49% | 34.36% | 30.41% | 31.43% |
Fastenal Company's profitability ratios exhibit a consistent and positive trend over the years.
1. Operating return on assets (Operating ROA) has been strong, improving from 28.80% in 2020 to a peak of 34.25% in 2023, with a slight decrease to 32.14% in 2024. This indicates that the company is effectively generating operating income relative to its assets.
2. Return on assets (ROA) has also shown improvement, rising from 21.67% in 2020 to 25.88% in 2023 before settling at 24.49% in 2024. ROA represents the overall profitability of the company in generating profits from its assets.
3. Return on total capital has seen a steady increase from 36.87% in 2020 to a high of 43.19% in 2023, before slightly decreasing to 40.36% in 2024. This metric reflects the company's ability to generate returns for all its capital providers, including both debt and equity.
4. Return on equity (ROE) has maintained a strong performance, fluctuating within a relatively narrow range from 30.41% in 2021 to 34.49% in 2023, before slightly dropping to 31.82% in 2024. ROE indicates the company's profitability from the shareholders' perspective.
Overall, Fastenal Company's profitability ratios demonstrate efficient management of assets and effective utilization of capital to generate returns for both shareholders and other capital providers. The consistent positive trend in these ratios suggests a sound financial performance and effective strategic decision-making by the company.