Fastenal Company (FAST)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,462,900 | 4,596,600 | 4,576,800 | 4,577,000 | 4,548,600 | 4,627,400 | 4,592,300 | 4,466,700 | 4,299,000 | 4,222,500 | 4,166,600 | 4,074,400 | 3,964,700 | 4,108,600 | 4,085,200 | 3,934,700 | 3,799,900 | 3,814,200 | 3,756,400 | 3,651,800 |
| 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 |
| Financial leverage ratio | 1.33 | 1.33 | 1.35 | 1.40 | 1.44 | 1.46 | 1.44 | 1.42 | 1.41 | 1.42 | 1.45 | 1.46 | 1.45 | 1.42 | 1.47 | 1.48 | 1.43 | 1.48 | 1.50 | 1.52 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,462,900K ÷ $3,348,800K
= 1.33
Fastenal Co.'s financial leverage ratio has shown a fluctuating trend over the past eight quarters. The ratio, which measures the extent to which the company relies on debt financing, ranged from 1.33 to 1.46 during this period.
From Q4 2022 to Q1 2023, there was a steady increase in the financial leverage ratio, indicating a higher reliance on debt to finance the company's operations. However, since Q1 2023, the ratio has started to decrease, suggesting a reduction in debt usage relative to equity.
The average financial leverage ratio over the eight quarters was approximately 1.41. A ratio above 1 indicates a higher proportion of debt in the company's capital structure, which can amplify returns but also increase financial risk. Conversely, a ratio below 1 signifies a more conservative debt-to-equity mix.
It is important for investors and stakeholders to monitor Fastenal Co.'s financial leverage ratio over time to assess the company's debt management strategy and overall financial health.
Peer comparison
Dec 31, 2023