Snap-On Inc (SNA)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,108,300 | 4,842,500 | 4,601,700 | 3,942,200 | 4,067,700 |
| Receivables | US$ in thousands | 1,506,200 | 1,433,800 | 1,335,000 | 1,283,400 | 1,325,400 |
| Receivables turnover | 3.39 | 3.38 | 3.45 | 3.07 | 3.07 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,108,300K ÷ $1,506,200K
= 3.39
Snap-On Inc's receivables turnover has been relatively stable over the past five years, ranging from 3.07 to 3.45. This ratio measures the efficiency of the company in collecting its accounts receivable from customers. A higher turnover indicates that Snap-On Inc is collecting its receivables more quickly.
The consistent range of 3.07 to 3.45 indicates that Snap-On Inc has been managing its receivables well over the years. The slight fluctuations may be attributed to changes in the company's credit policies, customer payment behaviors, or economic conditions.
Overall, a receivables turnover ratio of around 3.39 in 2023 suggests that Snap-On Inc is efficient in converting its credit sales into cash, demonstrating effective management of its accounts receivable.
Peer comparison
Dec 31, 2023