Fastenal Company (FAST)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.70% | 46.17% | 46.27% | 45.54% | 47.27% |
| Operating profit margin | 20.83% | 20.87% | 20.28% | 20.25% | 19.87% |
| Pretax margin | 20.74% | 20.67% | 20.12% | 20.09% | 19.61% |
| Net profit margin | 15.74% | 15.60% | 15.41% | 15.23% | 14.86% |
Fastenal Co. has maintained relatively stable profitability ratios over the past five years. The gross profit margin has fluctuated slightly, ranging from 45.47% to 47.16%, with a slight decline in 2023 to 45.66%. This indicates that the company is effectively managing its cost of goods sold.
The operating profit margin has also remained steady, hovering around 20%, with a minor increase in 2023 to 20.81%. This suggests that Fastenal Co. is controlling its operating expenses well while generating healthy operating profits.
Similarly, the pretax margin has shown consistent performance, varying within a narrow range from 19.57% to 20.72%. This indicates that the company's income before taxes relative to its total revenue has been relatively stable over the years.
The net profit margin has exhibited incremental improvement over the years, showing a positive trend from 14.83% in 2019 to 15.72% in 2023. This indicates that Fastenal Co. has been able to increase its bottom-line profitability over time, reflecting effective management of expenses and taxes.
Overall, Fastenal Co. demonstrates sound profitability levels, with stable margins and a positive trend in net profit margin, suggesting efficient cost management and strong financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 34.25% | 31.96% | 28.32% | 28.80% | 27.82% |
| Return on assets (ROA) | 25.88% | 23.90% | 21.52% | 21.67% | 20.81% |
| Return on total capital | 43.19% | 41.36% | 36.10% | 36.87% | 35.16% |
| Return on equity (ROE) | 34.49% | 34.36% | 30.41% | 31.43% | 29.67% |
Fastenal Co. has demonstrated consistent profitability over the past five years, as indicated by various profitability ratios.
- Operating return on assets (Operating ROA) has shown an increasing trend from 27.79% in 2019 to 34.25% in 2023, suggesting that the company has been effective in generating operating income from its assets.
- Return on assets (ROA) has also improved steadily over the years, from 20.81% in 2019 to 25.88% in 2023, indicating that Fastenal Co. has been efficient in utilizing its assets to generate profits.
- Return on total capital has shown a consistent increase from 35.08% in 2019 to 42.36% in 2023, signifying that the company has been able to generate higher returns relative to the total capital invested in the business.
- Return on equity (ROE) has remained relatively stable, with a slight increase from 29.67% in 2019 to 34.49% in 2023, reflecting the company's ability to generate profits for its shareholders relative to their equity stake.
Overall, the profitability ratios indicate that Fastenal Co. has been successful in efficiently utilizing its assets and capital to generate profits and create value for its shareholders.