Snap-On Inc (SNA)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.11 | 0.09 | 0.09 | 0.07 | 0.07 | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.06 | 0.07 | 0.09 | 0.10 | 0.10 | 0.11 | 0.13 | 0.13 | 0.15 | 0.16 | |
| DOH | days | 3,333.41 | 3,879.05 | 3,845.25 | 4,906.27 | 5,546.13 | 6,444.59 | 6,449.77 | 6,457.36 | 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 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.11
= 3,333.41
The days of inventory on hand (DOH) for Snap-On Inc have shown a fluctuating trend over the past few years. Beginning at approximately 2,275 days as of March 31, 2020, the DOH increased steadily, reaching a peak of around 7,182 days by December 31, 2022. This substantial increase in DOH may indicate that Snap-On Inc was holding high levels of inventory relative to its sales during this period.
However, there was a notable decline in DOH by March 31, 2023, dropping to approximately 4,906 days. This reduction suggests that Snap-On Inc may have implemented strategies to manage its inventory more efficiently and reduce the excess levels held previously.
The trend continued with a decrease in DOH to around 3,845 days by June 30, 2024, indicating a further improvement in inventory management. The subsequent slight increase in DOH by September 30, 2024, followed by a decrease by December 31, 2024, suggests that Snap-On Inc is focusing on optimizing its inventory levels to align them more closely with demand.
Overall, the fluctuation in Snap-On Inc's DOH reflects varying levels of inventory management effectiveness and the company's efforts to balance inventory levels with operational requirements and market conditions. Continued monitoring and analysis of the DOH ratio will be crucial for assessing Snap-On Inc's inventory management practices and their impact on the company's financial performance.
Peer comparison
Dec 31, 2024