Snap-On Inc (SNA)
Payables 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 |
| Payables | US$ in thousands | 265,900 | 270,000 | 271,100 | 257,400 | 238,000 | 284,300 | 274,200 | 283,100 | 287,000 | 305,300 | 308,500 | 297,300 | 277,600 | 266,900 | 280,200 | 235,900 | 222,900 | 206,000 | 186,200 | 193,700 |
| Payables turnover | 0.39 | 0.35 | 0.34 | 0.28 | 0.28 | 0.21 | 0.22 | 0.21 | 0.18 | 0.17 | 0.18 | 0.20 | 0.25 | 0.29 | 0.27 | 0.35 | 0.42 | 0.50 | 0.61 | 0.63 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $103,300K ÷ $265,900K
= 0.39
The payables turnover ratio measures how efficiently a company is managing its accounts payable. A higher ratio indicates that the company is paying its suppliers more quickly.
Analyzing the payables turnover of Snap-On Inc over the period from March 31, 2020, to December 31, 2024, we can see a decreasing trend. The ratio decreased from 0.63 in March 2020 to 0.39 in December 2024. This suggests that Snap-On Inc is taking more time to pay its suppliers over the period.
A declining payables turnover ratio could indicate a few things. It may suggest that the company is facing liquidity issues or strategic changes in its payment terms with suppliers. Furthermore, a decreasing ratio could also be a signal of weakening supplier relationships or inefficiencies in managing accounts payable.
Investors and analysts should further investigate the reasons behind the decreasing trend in Snap-On Inc's payables turnover to assess the company's financial health and operational efficiency effectively.
Peer comparison
Dec 31, 2024