Fastenal Company (FAST)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,155,000 | 1,086,900 | 925,000 | 859,100 | 790,900 |
| Total stockholders’ equity | US$ in thousands | 3,348,800 | 3,163,200 | 3,042,200 | 2,733,200 | 2,665,600 |
| ROE | 34.49% | 34.36% | 30.41% | 31.43% | 29.67% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,155,000K ÷ $3,348,800K
= 34.49%
Fastenal Co. has shown a consistent and healthy return on equity (ROE) over the past five years. The ROE has been steadily increasing from 29.67% in 2019 to 34.49% in 2023, reflecting the company's effectiveness in generating profits from shareholders' equity. This upward trend indicates that Fastenal Co. has been successful in utilizing its equity efficiently to generate earnings for its shareholders. The company's ability to maintain a ROE above 30% over the years suggests strong financial performance and effective management of resources. Overall, Fastenal Co.'s ROE performance demonstrates a positive outlook for the company's financial health and shareholder value.
Peer comparison
Dec 31, 2023