Snap-On Inc (SNA)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 118,500 | 92,700 | 71,100 | 81,000 | 119,300 |
| Inventory | US$ in thousands | 943,400 | 1,005,900 | 1,033,100 | 803,800 | 746,500 |
| Inventory turnover | 0.13 | 0.09 | 0.07 | 0.10 | 0.16 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $118,500K ÷ $943,400K
= 0.13
Snap-On Inc's inventory turnover has been declining over the past five years, dropping from 0.16 in December 2020 to 0.13 in December 2024. This indicates that the company is taking longer to sell its inventory, which can tie up capital and increase holding costs. A low inventory turnover ratio may suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory. Snap-On Inc should closely monitor its inventory levels and sales strategies to improve this ratio and optimize its working capital efficiency.
Peer comparison
Dec 31, 2024
Company name
Symbol
Inventory turnover
Snap-On Inc
SNA
0.13
Simpson Manufacturing Company Inc
SSD
2.91
Stanley Black & Decker Inc
SWK
3.46