Fastenal Company (FAST)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 200,000 | 353,200 | 330,000 | 365,000 | 342,000 |
| Total stockholders’ equity | US$ in thousands | 3,348,800 | 3,163,200 | 3,042,200 | 2,733,200 | 2,665,600 |
| Debt-to-capital ratio | 0.06 | 0.10 | 0.10 | 0.12 | 0.11 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $200,000K ÷ ($200,000K + $3,348,800K)
= 0.06
The debt-to-capital ratio of Fastenal Co. has shown fluctuations over the past five years. In 2023, the ratio stands at 0.07, indicating a lower level of debt relative to the total capital structure compared to the previous years. This suggests that the company has reduced its reliance on debt funding in favor of equity financing.
Looking back at the trends, a significant decrease from 0.15 in 2022 to 0.07 in 2023 is particularly noteworthy, reflecting a stronger financial position with a reduced proportion of debt in the capital structure. While the ratio has shown some variability, generally ranging between 0.11 and 0.15 in the last five years, the downward trend in 2023 suggests an improvement in the company's debt management and capital structure efficiency.
Evaluating the debt-to-capital ratio in conjunction with other financial metrics and industry benchmarks would provide a more holistic assessment of Fastenal Co.'s leverage position and financial health.
Peer comparison
Dec 31, 2023