Fastenal Company (FAST)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.03 | 0.03 | 0.04 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.11 | 0.13 | 0.10 | 0.11 | 0.11 | 0.11 | 0.13 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $125,000K ÷ $3,616,300K
= 0.03
Fastenal Company's debt-to-equity ratio has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024. The ratio decreased from 0.17 on March 31, 2020, to 0.03 on December 31, 2024. This indicates that the company has been reducing its reliance on debt financing in comparison to equity over the years. A lower debt-to-equity ratio is generally considered favorable as it suggests lower financial risk and leverage for the company. The decreasing trend in the ratio may indicate improved financial health, stronger equity base, or effective debt management by Fastenal Company during the period under review.
Peer comparison
Dec 31, 2024