Snap-On Inc (SNA)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	3.39	3.39	3.36	—	3.38	—	—	—	3.45	—	—	—	3.07	3.02	3.22	3.22	3.07	3.34	3.35	3.38
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
Working capital turnover	1.88	1.93	1.94	1.99	2.02	2.11	2.11	2.11	2.22	2.29	2.32	2.26	2.06	2.09	1.94	2.89	2.84	2.99	2.95	3.05

The inventory turnover of Snap-On Inc has been relatively stable over the period, averaging around 0.10 with a significant increase in the latest quarter to 0.64, indicating a higher rate of inventory sold during that period.

The receivables turnover ratio has also remained fairly consistent, with an average of around 3.30 over the period. This suggests that the company efficiently collects its receivables and converts them into cash multiple times a year.

In terms of payables turnover, there has been fluctuation in the ratio, with an average of approximately 0.50. The higher ratios indicate that Snap-On Inc is able to effectively manage its payables and settle its obligations in a timely manner.

The working capital turnover has also shown stability around 2.3 on average, with a slight decrease in the latest quarter to 1.88. This ratio indicates how efficiently the company is utilizing its working capital to generate sales. Overall, Snap-On Inc's activity ratios suggest effective management of inventory, receivables, payables, and working capital.

Average number of days

		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
Days of inventory on hand (DOH)	days	566.51	588.71	595.58	597.20	7,182.50	6,875.97	5,906.78	5,274.19	4,276.78	3,787.17	3,620.97	3,273.79	2,886.36	2,730.00	2,514.59	2,275.32	2,507.19	1,804.64	1,699.28	373.72
Days of sales outstanding (DSO)	days	107.62	107.79	108.67	—	108.07	—	—	—	105.89	—	—	—	118.83	121.01	113.19	113.35	118.93	109.42	109.11	108.01
Number of days of payables	days	134.04	162.04	156.11	161.15	1,995.33	2,197.92	2,039.90	1,814.62	1,477.03	1,280.14	1,333.42	1,057.78	861.85	735.71	597.21	581.90	654.49	492.89	504.07	105.93

Snap-On Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, and payables.

Days of Inventory on Hand (DOH):
- Snap-On's DOH has been fluctuating over the periods, ranging from as high as 7,182.50 days to as low as 373.72 days.
- The drastic fluctuations in DOH might suggest inconsistencies in inventory management, potentially indicating challenges in forecasting demand, controlling stock levels, or managing production processes efficiently.

Days of Sales Outstanding (DSO):
- Snap-On's DSO has also varied, indicating the number of days it takes for the company to collect its accounts receivable.
- DSO fluctuates between 105.89 days and 121.01 days over the periods, which could reflect changes in the effectiveness of the company's credit policies, collection procedures, or the creditworthiness of its customers.

Number of Days of Payables:
- The number of days of payables of Snap-On has shown fluctuations, ranging from 105.93 days to 2,197.92 days.
- The variability indicates changes in the company's payment terms with suppliers and its ability to manage its working capital effectively. Higher days of payables may suggest the company is taking longer to pay its suppliers, potentially impacting relationships with them.

Overall, Snap-On's activity ratios highlight areas where the company may need to focus on improving efficiency in managing its working capital components, specifically in inventory, receivables, and payables, to enhance overall operational performance and financial health.

Long-term

	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
Fixed asset turnover	9.51	9.68	9.58	9.60	9.50	9.84	9.46	9.19	8.96	8.87	8.60	8.02	7.59	7.65	7.52	7.98	7.92	7.94	8.01	8.17
Total asset turnover	0.68	0.69	0.69	0.69	0.69	0.70	0.69	0.68	0.68	0.70	0.66	0.62	0.60	0.61	0.62	0.72	0.71	0.73	0.73	0.74

Snap-On Inc's fixed asset turnover ratio has been relatively stable over the past two years, with a range between 7.52 to 9.84. This indicates that the company is effectively utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio suggests that the company is efficient in generating sales from its investment in property, plant, and equipment.

On the other hand, Snap-On Inc's total asset turnover ratio has shown some fluctuations but has generally decreased over the same period. The total asset turnover ratio measures how efficiently the company is using all of its assets to generate sales. A decreasing trend in total asset turnover may suggest that Snap-On Inc is not utilizing its total assets as efficiently to generate sales compared to previous periods.

In conclusion, while Snap-On Inc has maintained a strong fixed asset turnover indicating efficient use of its fixed assets, the decreasing trend in total asset turnover raises some concerns about the overall efficiency of the company in generating sales with its total asset base.