Fastenal Company (FAST)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,532,800 | 1,454,300 | 1,217,500 | 1,142,400 | 1,057,600 |
| Interest expense | US$ in thousands | 10,800 | 14,300 | 9,700 | 9,700 | 13,900 |
| Interest coverage | 141.93 | 101.70 | 125.52 | 117.77 | 76.09 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,532,800K ÷ $10,800K
= 141.93
Fastenal Co.'s interest coverage ratio has shown a consistently strong performance over the past five years, indicating the company's ability to comfortably meet its interest payment obligations using its operating income. The interest coverage ratio has significantly improved from 78.22 in 2019 to 228.16 in 2023, reflecting a positive trend in the company's ability to cover its interest expenses. This indicates that Fastenal Co. is generating ample operating income to service its debt obligations, which is a favorable indicator of financial stability and solvency for the company. The upward trend in the interest coverage ratio demonstrates the company's strong financial position and efficient management of its debt obligations over the years.
Peer comparison
Dec 31, 2023