Snap-On Inc (SNA)
Payables 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 |
| Payables | US$ in thousands | 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 | 198,500 | 205,800 | 215,300 | 200,400 |
| Payables turnover | 2.72 | 2.25 | 2.34 | 2.26 | 0.18 | 0.17 | 0.18 | 0.20 | 0.25 | 0.29 | 0.27 | 0.35 | 0.42 | 0.50 | 0.61 | 0.63 | 0.56 | 0.74 | 0.72 | 3.45 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $648,100K ÷ $238,000K
= 2.72
The payables turnover ratio for Snap-On Inc has experienced fluctuations over the past several quarters. The ratio was relatively low in the first three quarters of 2019, gradually increasing to 0.74 by the end of the year. However, there was a significant spike in the payables turnover ratio in the first quarter of 2020, reaching 3.45, which suggests that Snap-On Inc was able to manage its payables efficiently during that period.
Subsequently, the payables turnover ratio decreased in the following quarters of 2020 and 2021, hovering between 0.17 and 0.35. This indicates a potential slowdown in payables management efficiency during those periods. It is worth noting that in the last quarter of 2021, the ratio improved to 0.56 and continued to increase in 2022, reaching 2.26 by the end of the first quarter.
In the most recent quarters of 2022 and 2023, the payables turnover ratio ranged between 2.25 and 2.72, reflecting Snap-On Inc's ability to efficiently manage its payables by paying off its suppliers more frequently. This improvement in the payables turnover ratio indicates that the company may be effectively managing its working capital and vendor relationships. Overall, the trend in the payables turnover ratio suggests that Snap-On Inc has made progress in optimizing its payables management in recent quarters.
Peer comparison
Dec 31, 2023