Snap-On Inc (SNA)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.13 | 0.09 | 0.07 | 0.10 | 0.16 | |
| DOH | days | 2,905.83 | 3,960.66 | 5,303.54 | 3,622.06 | 2,283.93 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.13
= 2,905.83
The days of inventory on hand (DOH) for Snap-On Inc have exhibited fluctuations over the past five years, indicating variations in inventory management efficiency.
In December 2020, Snap-On Inc had approximately 2,283.93 days of inventory on hand. This figure increased significantly to 3,622.06 days by December 2021, suggesting a potential build-up of inventory or slower inventory turnover.
By December 2022, the DOH surged to 5,303.54 days, reaching its highest level in the period under review. Such a substantial increase may indicate potential challenges in managing stock levels efficiently or lower-than-anticipated sales.
In the following year, December 2023, the DOH decreased to 3,960.66 days, reflecting a possible improvement in inventory management practices. However, the figure remained elevated compared to the initial year.
As of December 2024, Snap-On Inc managed to reduce its DOH to 2,905.83 days, signaling a more favorable inventory turnover rate. Despite the decrease, the company still maintains higher-than-ideal inventory levels relative to sales, which could impact liquidity and working capital management.
Overall, the trend in Snap-On Inc's DOH suggests varying degrees of effectiveness in managing inventory levels over the years, necessitating continued monitoring and potential optimization of inventory practices to enhance operational efficiency and financial performance.
Peer comparison
Dec 31, 2024