Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Fastenal Co's annualizedNet Income for the quarter that ended in Mar. 2024 was $1,191 Mil. Fastenal Co's average total tangible assets for the quarter that ended in Mar. 2024 was $4,498 Mil. Therefore, Fastenal Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2024 was 26.48%.
The historical rank and industry rank for Fastenal Co's Return-on-Tangible-Asset or its related term are showing as below:
FAST'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 19.2 Med: 22.25 Max: 25.63
Current: 25.45
During the past 13 years, Fastenal Co's highest Return-on-Tangible-Asset was 25.63%. The lowest was 19.20%. And the median was 22.25%.
FAST's Return-on-Tangible-Asset is ranked better than 99.31% of 145
companies
in the Industrial Distribution industry
Industry Median: 5.17
vs FAST: 25.45
Fastenal Co Return-on-Tangible-Asset Historical Data
The historical data trend for Fastenal Co's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Fastenal Co's Return-on-Tangible-Asset
For the Industrial Distribution subindustry, Fastenal Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Fastenal Co's Return-on-Tangible-Asset Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Fastenal Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Fastenal Co's Return-on-Tangible-Asset falls into.
Fastenal Co Return-on-Tangible-Asset Calculation
Fastenal Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2024) net income data.
Fastenal Co (NAS:FAST) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Fastenal Co Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Fastenal Co's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Fastenal opened its first fastener store in 1967 in Winona, Minnesota. Since then, Fastenal has greatly expanded its footprint as well as its products and services. Today, Fastenal serves its 400,000 active customers through approximately 1,600 branches, over 1,700 on-site locations, and 14 distribution centers. Since 1993, the company has added other product categories, but fasteners remain its largest category at about 30%-35% of sales. Fastenal also offers customers supply-chain solutions, such as vending and vendor-managed inventory.
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