Snap-On Inc (SNA)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 648,100 | 640,400 | 641,100 | 641,200 | 52,500 | 50,700 | 55,200 | 59,800 | 68,600 | 76,100 | 76,700 | 81,400 | 94,400 | 102,200 | 113,800 | 121,500 | 110,700 | 152,400 | 155,900 | 690,500 |
| Inventory | US$ in thousands | 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 | 760,400 | 753,500 | 725,800 | 707,000 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $648,100K ÷ $1,005,900K
= 0.64
Inventory turnover for Snap-On Inc has shown variability over the past few quarters. The ratio indicates how many times the company's inventory is sold and replaced over a specific period. A higher inventory turnover is generally preferable as it suggests efficient management of inventory levels.
From the data provided, the inventory turnover ratio has fluctuated, with a low of 0.05 in Dec 2022 and a high of 0.98 in Mar 2019. In recent quarters, there seems to be a gradual improvement, with the ratio increasing from 0.06 in Jun 2022 to 0.64 in Dec 2023.
A sustained increase in inventory turnover ratio signifies that Snap-On Inc is efficiently managing its inventory by selling goods more rapidly or maintaining optimal inventory levels. However, the company should continue monitoring this metric to ensure the trend is consistent and reflective of healthy inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023