Fastenal Company (FAST)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,698,000 | 4,738,400 | 4,603,500 | 4,532,700 | 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 |
| 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 |
| Financial leverage ratio | 1.30 | 1.32 | 1.32 | 1.32 | 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 |
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 been relatively stable over the period from March 31, 2020, to December 31, 2024, fluctuating within a narrow range between 1.30 and 1.48. This ratio indicates that, on average, the company relies on debt to finance its operations by a factor of approximately 1.40. A financial leverage ratio of 1.40 implies that for every dollar of equity, the company has $1.40 in debt.
The gradual decline in the financial leverage ratio from 1.48 in March 2020 to 1.30 in December 2024 suggests that Fastenal has been gradually reducing its reliance on debt as a source of financing over time. This trend may indicate a strategic shift towards a more conservative capital structure or improved financial stability.
Overall, the consistent but decreasing trend in Fastenal's financial leverage ratio indicates that the company has been managing its debt levels effectively while maintaining a healthy balance between equity and debt in its capital structure.
Peer comparison
Dec 31, 2024