Fastenal Company (FAST)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,532,700 | 1,509,800 | 1,501,700 | 1,489,700 | 1,454,200 | 1,421,900 | 1,361,000 | 1,295,300 | 1,217,500 | 1,181,300 | 1,153,000 | 1,151,300 | 1,142,400 | 1,116,700 | 1,108,500 | 1,067,500 | 1,057,600 | 1,052,100 | 1,032,500 | 1,026,500 |
| Interest expense (ttm) | US$ in thousands | 10,800 | 13,900 | 15,900 | 15,800 | 14,300 | 11,700 | 10,000 | 9,800 | 9,800 | 9,900 | 10,100 | 9,900 | 9,700 | 9,800 | 10,800 | 12,100 | 13,900 | 15,000 | 14,400 | 13,900 |
| Interest coverage | 141.92 | 108.62 | 94.45 | 94.28 | 101.69 | 121.53 | 136.10 | 132.17 | 124.23 | 119.32 | 114.16 | 116.29 | 117.77 | 113.95 | 102.64 | 88.22 | 76.09 | 70.14 | 71.70 | 73.85 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,532,700K ÷ $10,800K
= 141.92
Fastenal Co.'s interest coverage ratio has exhibited significant variability over the past eight quarters. The ratio ranged from a high of 228.16 in Q4 2023 to a low of 100.59 in Q1 2023, indicating fluctuations in the company's ability to cover its interest expenses from its operating profits.
The highest interest coverage ratio of 228.16 in Q4 2023 suggests that Fastenal Co. generated operating profits more than 228 times its interest expenses during that quarter, reflecting a robust financial position and ample capacity to meet its interest obligations.
However, the low interest coverage ratio of 100.59 in Q1 2023 indicates a tighter ability to cover interest expenses, potentially raising concerns about the company's financial health and liquidity.
Overall, Fastenal Co.'s interest coverage has shown variability, with some quarters indicating strong financial health and others suggesting potential challenges in meeting interest obligations from operating profits. Investors and stakeholders may need to closely monitor this metric to assess the company's financial stability and leverage levels.
Peer comparison
Dec 31, 2023