Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Fastenal Co's Sloan Ratio for the quarter that ended in Mar. 2026 was 2.35%.
As of Mar. 2026, Fastenal Co has a Sloan Ratio of 2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Fastenal Co (NAS:FAST) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Fastenal Co has a Sloan Ratio of 2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Fastenal Co Sloan Ratio % Related Terms
Fastenal Co Sloan Ratio % Historical Data
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The historical data trend for Fastenal Co's Sloan Ratio % 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.
For the Industrial Distribution subindustry, Fastenal Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Fastenal Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fastenal Co's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Fastenal Co's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Fastenal Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 330.3 (Jun. 2025 ) + 335.5 (Sep. 2025 ) + 294 (Dec. 2025 ) + 339.8 (Mar. 2026 ) = $1,300 Mil.
Fastenal Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 278.6 (Jun. 2025 ) + 386.9 (Sep. 2025 ) + 368.1 (Dec. 2025 ) + 378.4 (Mar. 2026 ) = $1,412 Mil.
Fastenal Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -64.4 (Jun. 2025 ) + -54.8 (Sep. 2025 ) + -57.9 (Dec. 2025 ) + -57.6 (Mar. 2026 ) = $-235 Mil.
* 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.
Fastenal Co (FAST) has a Sloan Ratio % of 2.35% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Fastenal Co and its competitors.
Is Fastenal Co's Sloan Ratio % too high?
Fastenal Co's current Sloan Ratio % is 2.35%. Overall, Fastenal Co has a GF Score™ of 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fastenal Co's Sloan Ratio % compare to FERG and GWW?
Fastenal Co's Sloan Ratio % of 2.35% can be compared against companies in the Industrial Distribution industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Industrial Distribution company?
A good Sloan Ratio % depends on the Industrial Distribution industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Fastenal Co and its competitors. Fastenal Co's current Sloan Ratio % is 2.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fastenal Co stock overvalued right now?
Based on GuruFocus' analysis, Fastenal Co (FAST) is currently considered Fairly Valued. The stock's GF Value™ is $43.41, compared to a current price of $46.16 — trading 6.3% above its estimated fair value. The current Sloan Ratio % is 2.35%. Fastenal Co's overall GF Score™ is 99/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Fastenal Co (FAST), the current Sloan Ratio % is 2.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fastenal Co (FAST) Overvalued in 2026?
Based on GuruFocus' analysis, Fastenal Co stock appears to be overvalued.
The current stock price of $46.16 is trading 6.3% above its estimated GF Value™ of $43.41.
GuruFocus considers Fastenal Co to be Fairly Valued.
Key valuation signals for FAST:
Sloan Ratio %: 2.35%
GF Value™: $43.41 vs. price of $46.16 (6.3% above fair value)
No single metric tells the full story. See the FAST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fastenal began as an industrial retailer, expanding its product portfolio from nuts and bolts to cutting tools, safety equipment, and janitorial supplies. It transitioned into a distributor by building out a dense network of branches close to its business customers. Once a customer becomes large enough, Fastenal installs vending machines and its own personnel on-site. Today, these on-site locations exceed Fastenal's branch count and remain the firm's main focus for expansion. Fastenal acts as a one-stop outsourcing partner for its industrial customers, offering value-added services along with a wide breadth of maintenance, repair, and operations supplies.
99GF Score
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