Fastenal Company (FAST)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,528,700 | 1,453,600 | 1,217,400 | 1,141,800 | 1,057,200 |
| Total assets | US$ in thousands | 4,462,900 | 4,548,600 | 4,299,000 | 3,964,700 | 3,799,900 |
| Operating ROA | 34.25% | 31.96% | 28.32% | 28.80% | 27.82% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,528,700K ÷ $4,462,900K
= 34.25%
Fastenal Co.'s operating return on assets (operating ROA) has shown a positive trend over the past five years, indicating effective management of assets to generate operating income. The company's operating ROA has consistently improved from 27.79% in 2019 to 34.25% in 2023. This signifies that for every dollar of assets employed, Fastenal Co. generated 34.25 cents in operating income in 2023, up from 27.79 cents in 2019.
The increasing trend in operating ROA reflects the company's ability to efficiently utilize its assets to drive operating profitability. This improvement could be attributed to various factors such as effective cost management, revenue growth, or operational efficiencies.
Fastenal Co.'s strong operating ROA indicates that the company is generating significant operating income relative to the size of its asset base, which is a positive signal for investors and stakeholders. It suggests that the company is effectively managing its resources to drive profitability and create value for its shareholders.
Peer comparison
Dec 31, 2023