Fastenal Company (FAST)

Solvency ratios

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
Debt-to-assets ratio 0.03 0.03 0.03 0.04 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
Debt-to-capital ratio 0.03 0.03 0.03 0.06 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
Debt-to-equity ratio 0.03 0.03 0.04 0.06 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
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

Fastenal Company's solvency ratios show a consistently strong financial position over the years. The Debt-to-Assets ratio has decreased from 0.11 as of March 31, 2020, to 0.03 as of December 31, 2024, indicating that the company has been able to reduce its reliance on debt in financing its assets.

Similarly, the Debt-to-Capital ratio has trended downwards from 0.14 on March 31, 2020, to 0.03 on December 31, 2024, highlighting Fastenal's ability to lower its debt relative to its capital structure. This indicates a positive solvency position and reduced financial risk.

The Debt-to-Equity ratio has followed a similar decreasing trend, reflecting a decline from 0.17 on March 31, 2020, to 0.03 on December 31, 2024. This indicates that the company's equity has grown at a faster pace than its debt, strengthening its financial position and enhancing its ability to weather economic uncertainties.

The Financial Leverage ratio has also shown a consistent decline over the years, reducing from 1.48 as of March 31, 2020, to 1.30 as of December 31, 2024. This downward trend signifies that Fastenal has been successful in reducing its financial leverage and improving its solvency position.

Overall, based on the solvency ratios analyzed, Fastenal Company demonstrates strong financial health and effective management of debt levels, which bodes well for its long-term sustainability and ability to meet its financial obligations.

Coverage ratios

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
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

Fastenal Company's interest coverage has displayed a fluctuating trend over the periods from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.

Initially, the interest coverage ratio stood at 88.22 on March 31, 2020, and steadily increased over time, reaching a peak of 207.07 on December 31, 2024. This upward trend suggests that Fastenal's operating income was more than sufficient to cover its interest expenses during these periods.

However, there were some fluctuations along the way, with some quarters showing lower interest coverage ratios. For example, on March 31, 2023, the interest coverage ratio dipped to 94.28 before bouncing back to higher levels in subsequent periods.

Overall, the general increasing trend in the interest coverage ratio indicates that Fastenal Company has been progressively strengthening its ability to cover interest payments from its operating income, which is a positive sign for the company's financial health and its ability to meet its debt obligations.