Snap-On Inc (SNA)
Payables 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 |
| Payables | US$ in thousands | 265,900 | 238,000 | 287,000 | 277,600 | 222,900 |
| Payables turnover | 0.45 | 0.39 | 0.25 | 0.29 | 0.54 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $118,500K ÷ $265,900K
= 0.45
Snap-On Inc's payables turnover ratio has shown a declining trend over the five-year period from 2020 to 2024. The ratio decreased from 0.54 in 2020 to 0.25 in 2022 before rebounding to 0.45 in 2024. This indicates that the company is taking longer to pay off its trade payables in more recent years, which could suggest either a deterioration in the company's liquidity position or a shift in payment terms with suppliers. Further analysis of the company's cash flow management and supplier relationships is recommended to better understand the reasons behind the fluctuation in the payables turnover ratio.
Peer comparison
Dec 31, 2024