Fastenal Company (FAST)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,150,600 | 1,155,000 | 1,086,900 | 925,000 | 859,100 |
| Total stockholders’ equity | US$ in thousands | 3,616,300 | 3,348,800 | 3,163,200 | 3,042,200 | 2,733,200 |
| ROE | 31.82% | 34.49% | 34.36% | 30.41% | 31.43% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,150,600K ÷ $3,616,300K
= 31.82%
Fastenal Company's return on equity (ROE) has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The ROE was 31.43% in 2020 and decreased slightly to 30.41% in 2021. However, in the subsequent years, the ROE exhibited an upward trajectory, reaching 34.36% in 2022, 34.49% in 2023, and then decreasing slightly to 31.82% in 2024.
The consistently high ROE levels indicate that Fastenal Company is efficiently utilizing shareholders' equity to generate profits. The improvement in ROE from 2020 to 2022 suggests that the company has been effectively managing its assets and liabilities to enhance profitability. Although there was a slight decline in 2024, the overall trend indicates strong performance in utilizing shareholder funds to generate returns.
Fastenal's ability to maintain a relatively high ROE compared to industry peers may indicate a competitive advantage, efficient operations, or effective capital allocation strategies. It is essential for investors and stakeholders to monitor ROE trends over time to assess the company's financial performance and management's effectiveness in creating value for shareholders.
Peer comparison
Dec 31, 2024