Fastenal Company (FAST)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,511,600 | 1,522,900 | 1,522,300 | 1,530,900 | 1,532,700 | 1,509,800 | 1,501,700 | 1,489,700 | 1,454,200 | 1,421,900 | 1,361,000 | 1,295,300 | 1,217,500 | 1,181,300 | 1,153,000 | 1,151,300 | 1,142,400 | 1,116,700 | 1,108,500 | 1,067,500 |
| Long-term debt | US$ in thousands | 125,000 | 125,000 | 125,000 | 200,000 | 200,000 | 200,000 | 200,000 | 200,000 | 353,200 | 404,700 | 310,000 | 330,000 | 330,000 | 330,000 | 365,000 | 365,000 | 365,000 | 365,000 | 405,000 | 450,100 |
| Total stockholders’ equity | US$ in thousands | 3,616,300 | 3,597,400 | 3,495,600 | 3,429,200 | 3,348,800 | 3,466,600 | 3,380,800 | 3,270,600 | 3,163,200 | 3,161,200 | 3,178,700 | 3,142,000 | 3,042,200 | 2,964,700 | 2,880,800 | 2,786,700 | 2,733,200 | 2,885,600 | 2,783,000 | 2,656,600 |
| Return on total capital | 40.40% | 40.91% | 42.05% | 42.18% | 43.19% | 41.18% | 41.94% | 42.92% | 41.35% | 39.87% | 39.01% | 37.31% | 36.10% | 35.85% | 35.52% | 36.53% | 36.87% | 34.35% | 34.77% | 34.36% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,511,600K ÷ ($125,000K + $3,616,300K)
= 40.40%
Fastenal Company's return on total capital has shown a positive trend over the past few years. The ratio has been consistently above 30%, indicating that the company is generating significant returns relative to the total capital employed in its operations.
The return on total capital increased from 34.36% as of March 31, 2020, to 40.40% as of December 31, 2024. This signifies an improvement in the company's ability to generate profits from the total capital invested in the business.
Although there were slight fluctuations in the ratio over the period, the overall trend suggests that Fastenal Company has been effectively utilizing its capital to generate returns for shareholders. The increasing trend in return on total capital indicates a positive financial performance and efficient management of resources by the company.
Peer comparison
Dec 31, 2024