Snap-On Inc (SNA)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.64 | 0.62 | 0.61 | 0.61 | 0.05 | 0.05 | 0.06 | 0.07 | 0.09 | 0.10 | 0.10 | 0.11 | 0.13 | 0.13 | 0.15 | 0.16 | 0.15 | 0.20 | 0.21 | 0.98 | |
| DOH | days | 566.51 | 588.71 | 595.58 | 597.20 | 7,182.50 | 6,875.97 | 5,906.78 | 5,274.19 | 4,276.78 | 3,787.17 | 3,620.97 | 3,273.79 | 2,886.36 | 2,730.00 | 2,514.59 | 2,275.32 | 2,507.19 | 1,804.64 | 1,699.28 | 373.72 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.64
= 566.51
The days of inventory on hand (DOH) for Snap-On Inc have shown significant fluctuations over the provided historical period. Specifically, the company experienced a notable increase in DOH from the end of 2019 through the end of 2022, with DOH exceeding thousands of days at certain points during this period.
Starting from the fourth quarter of 2022, Snap-On managed to reduce its DOH significantly, reaching 566.51 days by the end of December 2023. This indicates a more efficient management of inventory levels, potentially through improved inventory control measures or adjustments in production and supply chain management.
The general downward trend in DOH from the end of 2022 to the end of 2023 suggests that Snap-On may have been successful in optimizing its inventory turnover and reducing excess inventory levels. Lower DOH values typically indicate that the company is selling its products more quickly relative to the amount of inventory held, which can positively impact cash flows and overall profitability.
Overall, the decreasing trend in DOH for Snap-On Inc reflects a potential improvement in inventory management efficiency, pointing towards a more streamlined and cost-effective operation in the recent periods. Continued monitoring and control of inventory levels will be essential for the company to sustain and further enhance its operational performance.
Peer comparison
Dec 31, 2023