Fastenal says ‘global supply chains have normalized versus the prior year’

“We produced operating cash flow of $302.1 in the second quarter of 2023, an increase of 99.8% from the second quarter of 2022, representing 101.4% of the period’s net earnings versus 52.7% in the second quarter of 2022. The improvement in operating cash flow, as a percent of net earnings, reflects working capital being a reduced use of cash in the second quarter of 2023 relative to the second quarter of 2022. Global supply chains have normalized versus the prior year, which has reduced the rate of working capital expansion necessary to support our customers’ growth. In the first six months of 2023, our operating cash flow was $690.6, an increase of 81.2% from the first six months of 2022, representing 116.4% of the period’s net earnings versus 68.5% in the first six months of 2022. The improvement in operating cash flow in the first six months of 2023, as a percent of net earnings, is driven by the same variables as the second quarter of 2023.”