Snap-On Inc (SNA)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 103,300 | 93,700 | 91,600 | 72,200 | 66,200 | 58,500 | 59,200 | 59,300 | 52,500 | 50,700 | 55,200 | 59,800 | 68,600 | 76,100 | 76,700 | 81,400 | 94,400 | 102,200 | 113,800 | 121,500 |
| Inventory | US$ in thousands | 943,400 | 995,800 | 965,000 | 970,500 | 1,005,900 | 1,032,900 | 1,046,100 | 1,049,100 | 1,033,100 | 955,100 | 893,300 | 864,100 | 803,800 | 789,600 | 760,900 | 730,100 | 746,500 | 764,400 | 784,000 | 757,400 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $103,300K ÷ $943,400K
= 0.11
Snap-On Inc's inventory turnover has been gradually declining over the past few years, indicating that the company is taking longer to sell its inventory. A decreasing trend in inventory turnover can suggest potential issues such as overstocking, slow-moving inventory, or changing consumer demand.
The inventory turnover ratio decreased from 0.16 in March 2020 to 0.11 in March 2024, with slight fluctuations in between. This downward trend may raise concerns about the efficiency of inventory management and the potential impact on the company's liquidity and profitability.
A low inventory turnover ratio can result in cash flow problems due to tied-up capital in unsold inventory. It could also lead to increased storage and holding costs, as well as potential write-downs for obsolete or slow-moving inventory.
Snap-On Inc may need to review its inventory management practices, assess product mix, streamline supply chain processes, or adjust pricing strategies to improve inventory turnover and optimize its working capital efficiency. Regular monitoring and analysis of inventory turnover ratios are crucial for identifying operational inefficiencies and implementing timely corrective measures.
Peer comparison
Dec 31, 2024
Dec 31, 2024