Fastenal Company (FAST)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,510,000 | 1,532,800 | 1,454,300 | 1,217,500 | 1,142,400 |
| Long-term debt | US$ in thousands | 125,000 | 200,000 | 353,200 | 330,000 | 365,000 |
| Total stockholders’ equity | US$ in thousands | 3,616,300 | 3,348,800 | 3,163,200 | 3,042,200 | 2,733,200 |
| Return on total capital | 40.36% | 43.19% | 41.36% | 36.10% | 36.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,510,000K ÷ ($125,000K + $3,616,300K)
= 40.36%
Fastenal Company's return on total capital has shown a positive trend over the years, increasing from 36.87% in 2020 to 40.36% in 2024. This indicates that the company is effectively generating returns from its total capital invested. The steady improvement in return on total capital reflects the company's efficiency in utilizing its resources to generate profits. Fastenal's ability to maintain high returns on total capital demonstrates strong operational performance and effective capital allocation strategies. Overall, the increasing trend in return on total capital suggests that Fastenal Company is efficiently managing its capital structure and investments to create value for its stakeholders.
Peer comparison
Dec 31, 2024