Snap-On Inc (SNA)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 92,700 | 71,100 | 81,000 | 119,300 | 111,000 |
| Payables | US$ in thousands | 238,000 | 287,000 | 277,600 | 222,900 | 198,500 |
| Payables turnover | 0.39 | 0.25 | 0.29 | 0.54 | 0.56 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $92,700K ÷ $238,000K
= 0.39
Snap-On Inc's payables turnover ratio has been fluctuating over the past five years. The ratio indicates how efficiently the company is managing its trade payables by measuring how many times during a period the company pays off its suppliers.
In 2023, the payables turnover ratio was 0.39, showing an improvement compared to the previous year. This implies that Snap-On Inc took around 0.39 times to pay off its trade payables during the year. A higher ratio generally indicates that the company is more efficient in managing its payables.
The decreasing trend in payables turnover from 2020 to 2022 may suggest that Snap-On Inc was taking longer to pay off its suppliers during those years. However, the slight increase in 2023 could indicate an improvement in the company's ability to manage its payables more efficiently.
It is important for investors and analysts to consider the payables turnover ratio in conjunction with other financial metrics to gain a deeper understanding of Snap-On Inc's financial health and operational efficiency. Further analysis and comparison with industry benchmarks can provide more insights into the company's financial management practices.
Peer comparison
Dec 31, 2023