Fastenal Company (FAST)

Solvency ratios

	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
Debt-to-assets ratio	0.04	0.04	0.04	0.04	0.08	0.09	0.07	0.07	0.08	0.08	0.09	0.09	0.09	0.09	0.10	0.11	0.09	0.12	0.13	0.13
Debt-to-capital ratio	0.06	0.05	0.06	0.06	0.10	0.11	0.09	0.10	0.10	0.10	0.11	0.12	0.12	0.11	0.13	0.14	0.11	0.15	0.17	0.17
Debt-to-equity ratio	0.06	0.06	0.06	0.06	0.11	0.13	0.10	0.11	0.11	0.11	0.13	0.13	0.13	0.13	0.15	0.17	0.13	0.17	0.20	0.20
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

Solvency ratios are important metrics that assess a company's ability to meet its long-term debt obligations using its assets, capital, and equity.

1. Debt-to-assets ratio: Fastenal Co. has consistently maintained a low debt-to-assets ratio, ranging from 0.06 to 0.12 over the past eight quarters. This indicates that the company relies relatively less on debt to finance its assets and possesses a strong asset base to cover its debt obligations.

2. Debt-to-capital ratio: The trend in Fastenal Co.'s debt-to-capital ratio shows a similar pattern to the debt-to-assets ratio, staying in the range of 0.07 to 0.15. This ratio signifies the proportion of total capital that is funded by debt, with lower ratios suggesting a healthier capital structure.

3. Debt-to-equity ratio: Fastenal Co.'s debt-to-equity ratio has also remained stable between 0.08 and 0.18 throughout the quarters under consideration. A lower debt-to-equity ratio implies that the company relies less on debt financing and has a higher proportion of equity in its capital structure to cushion against financial risks.

4. Financial leverage ratio: The financial leverage ratio for Fastenal Co. has shown a slightly increasing trend over the past quarters, ranging from 1.33 to 1.46. This ratio measures the company's reliance on debt to support its operations, with higher ratios indicating greater financial risk. Fastenal Co.'s increasing financial leverage ratio may suggest a shift towards a more leveraged capital structure over time.

Overall, based on the consistent low levels of the debt-to-assets, debt-to-capital, and debt-to-equity ratios, Fastenal Co. appears to maintain a sound solvency position with a healthy balance between debt and equity financing. However, the slight increase in the financial leverage ratio warrants a closer examination of the company's debt management strategies and long-term financial health.

Coverage ratios

	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
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

Fastenal Co.'s interest coverage ratio for the last eight quarters has shown a generally positive trend, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio peaked in Q4 2023 at 228.16, reflecting a significant increase compared to the previous quarter. This surge suggests that Fastenal Co.'s operating income is more than sufficient to cover its interest expenses.

Although there were fluctuations in the ratio over the quarters, with the highest point in Q4 2023 and the lowest in Q1 2023, the overall trend shows a healthy interest coverage ratio above 100 for each quarter. This indicates that the company has a strong ability to service its debt obligations comfortably.

The steady and generally high interest coverage ratio exhibited by Fastenal Co. signals financial stability and reliability in meeting its interest payments, which is positive for investors, lenders, and other stakeholders. It suggests that the company has a solid financial position and is capable of managing its debt effectively.