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

Company name
Symbol
Operating ROA
Fastenal Company
FAST
34.25%
Sherwin-Williams Co
SHW
18.13%
Tractor Supply Company
TSCO
16.10%