Fastenal Company (FAST)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,698,000 | 4,462,900 | 4,548,600 | 4,299,000 | 3,964,700 |
| Total stockholders’ equity | US$ in thousands | 3,616,300 | 3,348,800 | 3,163,200 | 3,042,200 | 2,733,200 |
| Financial leverage ratio | 1.30 | 1.33 | 1.44 | 1.41 | 1.45 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,698,000K ÷ $3,616,300K
= 1.30
The financial leverage ratio of Fastenal Company has shown a declining trend over the past few years, decreasing from 1.45 in December 2020 to 1.30 in December 2024. This indicates that the company is relying less on debt to finance its operations and growth, which could be viewed positively by investors and creditors. The decreasing ratio suggests that Fastenal Company has been effectively managing its debt levels and may have improved its financial stability by reducing its reliance on borrowed funds. It is important for investors to monitor this trend to assess the company's ability to meet its financial obligations and sustain long-term performance.
Peer comparison
Dec 31, 2024