Snap-On Inc (SNA)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 0.11 0.09 0.09 0.07 0.07 0.06 0.06 0.06 0.05 0.05 0.06 0.07 0.09 0.10 0.10 0.11 0.13 0.13 0.15 0.16
Receivables turnover 3.30 3.31 3.38 3.30 3.39 3.39 3.36 — 3.38 — — — 3.45 — — — 3.07 3.02 3.22 3.22
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
Working capital turnover 1.69 1.68 1.76 1.84 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

Snap-On Inc's activity ratios indicate the efficiency of the company in managing its assets and operations.

1. Inventory Turnover: Snap-On's inventory turnover has been on a declining trend from 0.16 in March 2020 to 0.11 in March 2024. This suggests that the company's ability to sell its inventory has decreased over the years, which could indicate potential issues with inventory management or decreasing demand for its products.

2. Receivables Turnover: The receivables turnover ratio shows how efficiently Snap-On collects payments from its customers. The ratio fluctuates over the years, with values ranging from 3.02 to 3.45. Generally, a higher ratio is preferred as it indicates quicker collection of receivables. Snap-On's receivables turnover ratio seems relatively stable, suggesting that the company manages its accounts receivable effectively.

3. Payables Turnover: The payables turnover ratio reflects how quickly Snap-On pays its suppliers. The ratio has also shown some fluctuations, but overall it has been decreasing from 0.63 in March 2020 to 0.39 in December 2024. A declining payables turnover ratio could indicate that the company is taking longer to pay its suppliers, which could impact relationships or indicate financial difficulties.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently Snap-On uses its working capital to generate sales. The ratio has been gradually decreasing from 2.89 in March 2020 to 1.69 in December 2024. A declining working capital turnover ratio suggests that the company's working capital is not being effectively utilized to generate revenue, which could be a concern for the company's overall operational efficiency.

In conclusion, while Snap-On Inc has maintained some level of stability in its activity ratios such as receivables turnover, it faces challenges in areas such as inventory turnover, payables turnover, and working capital turnover, which may require further investigation and management attention to improve efficiency and overall performance.

Average number of days

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
Days of inventory on hand (DOH) days 3,333.41 3,879.05 3,845.25 4,906.27 5,546.13 6,444.59 6,449.77 6,457.36 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
Days of sales outstanding (DSO) days 110.46 110.38 108.10 110.54 107.62 107.79 108.67 — 108.07 — — — 105.89 — — — 118.83 121.01 113.19 113.35
Number of days of payables days 939.53 1,051.76 1,080.26 1,301.26 1,312.24 1,773.84 1,690.59 1,742.52 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

Based on the provided data, Snap-On Inc's activity ratios show fluctuations over the years.

1. Days of Inventory on Hand (DOH):
- Snap-On Inc's DOH increased steadily from March 31, 2020, to December 31, 2023, indicating an increase in the number of days it takes to sell its inventory.
- There was a sudden decrease in DOH from December 31, 2023, to December 31, 2024, suggesting a possible improvement in inventory management or a reduction in inventory levels.

2. Days of Sales Outstanding (DSO):
- The DSO of Snap-On Inc varied over the years, with some periods showing no data available.
- From the data provided, it can be observed that the DSO decreased from December 31, 2021, to December 31, 2023, indicating a faster collection of receivables.

3. Number of Days of Payables:
- Snap-On Inc's payables period fluctuated significantly from March 31, 2020, to December 31, 2024.
- There was an upward trend in the payables period up to June 30, 2022, followed by a decline, possibly indicating changes in the company's payment practices.

Overall, Snap-On Inc's activity ratios depict varying trends in managing its inventory, receivables, and payables over the years, with some improvements in certain periods while facing challenges in others.

Long-term

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
Fixed asset turnover 9.44 9.33 9.52 9.60 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
Total asset turnover 0.65 0.64 0.66 0.67 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

Snap-On Inc's fixed asset turnover has shown a consistent increasing trend from 7.98 in March 2020 to 9.44 in December 2024. This indicates that the company is generating more sales revenue from its fixed assets over time.

In contrast, the total asset turnover ratio has fluctuated within a narrow range, with a slight decline from 0.72 in March 2020 to 0.65 in December 2024. This suggests that Snap-On Inc is not as efficient in generating sales from all its assets compared to just its fixed assets.

Overall, the increasing fixed asset turnover ratio is a positive sign of operational efficiency and effective utilization of fixed assets by Snap-On Inc, while the stable but relatively lower total asset turnover ratio may indicate opportunities for further improvement in asset utilization to enhance overall performance.