Fastenal Company (FAST)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,511,600 | 1,522,900 | 1,522,300 | 1,530,900 | 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 |
| Interest expense (ttm) | US$ in thousands | 7,300 | 7,500 | 7,800 | 8,900 | 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 |
| Interest coverage | 207.07 | 203.05 | 195.17 | 172.01 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,511,600K ÷ $7,300K
= 207.07
The interest coverage ratio reflects Fastenal Company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest payments.
Based on the provided data:
- Fastenal's interest coverage has shown a general increasing trend over the past few years, indicating improved ability to cover interest expenses.
- The ratio was relatively high at around 88.22 in March 2020 and has increased steadily, reaching a peak of 207.07 by December 31, 2024.
- The company's interest coverage ratio has remained consistently above 1, indicating that the company is generating enough operating income to cover its interest expenses.
- The ratio experienced fluctuations, with some quarters showing higher fluctuations than others, likely influenced by changes in operating income and interest expenses.
- The high interest coverage ratio in recent years suggests that Fastenal has a robust financial position and is effectively managing its debt obligations.
Overall, based on the trend observed in the interest coverage ratio, Fastenal Company appears to be in a strong financial position with the ability to easily cover its interest payments.
Peer comparison
Dec 31, 2024