Fastenal Company (FAST)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 125,000 | 200,000 | 353,200 | 330,000 | 365,000 |
| Total assets | US$ in thousands | 4,698,000 | 4,462,900 | 4,548,600 | 4,299,000 | 3,964,700 |
| Debt-to-assets ratio | 0.03 | 0.04 | 0.08 | 0.08 | 0.09 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $125,000K ÷ $4,698,000K
= 0.03
The debt-to-assets ratio of Fastenal Company has shown a decreasing trend over the past five years, from 0.09 in 2020 to 0.03 in 2024. This ratio indicates the proportion of the company's assets that are financed by debt. A lower debt-to-assets ratio generally implies lower financial risk, as the company relies less on debt to fund its operations and investments. Fastenal's decreasing ratio indicates a conservative approach to financing, which may contribute to its financial stability and resilience in the face of economic challenges. The declining trend suggests that the company has been effectively managing its debt levels relative to its asset base over the years.
Peer comparison
Dec 31, 2024