Fastenal Company (FAST)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 342,000 | 442,000 | 497,000 | 484,600 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,665,600 | 2,585,700 | 2,503,700 | 2,397,200 |
| Debt-to-capital ratio | 0.06 | 0.05 | 0.06 | 0.06 | 0.10 | 0.11 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.11 | 0.13 | 0.14 | 0.11 | 0.15 | 0.17 | 0.17 |
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 displayed stability over the past eight quarters, ranging between 0.07 and 0.15. This ratio indicates the proportion of the company's capital structure financed by debt, with the lower ratios suggesting a lower reliance on debt for funding operations and investments.
The consistent ratio around 0.07 to 0.15 implies that Fastenal has maintained a relatively conservative approach to debt management during this period, avoiding excessive borrowing that could potentially strain its financial position. Additionally, the data does not show any significant trends or sudden spikes in the debt-to-capital ratio, indicating a balanced capital structure and financial risk management strategy within the company.
Overall, the debt-to-capital ratio analysis suggests that Fastenal Co. has maintained a prudent level of debt relative to its total capital, reflecting a degree of financial stability and sound management decisions in terms of leveraging their capital structure.
Peer comparison
Dec 31, 2023