Snap-On Inc (SNA)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,108,400 | 5,108,300 | 4,842,500 | 4,601,700 | 3,942,200 |
| Receivables | US$ in thousands | 1,545,900 | 1,506,200 | 1,433,800 | 1,335,000 | 1,283,400 |
| Receivables turnover | 3.30 | 3.39 | 3.38 | 3.45 | 3.07 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,108,400K ÷ $1,545,900K
= 3.30
Snap-On Inc's receivables turnover ratio has shown a relatively stable trend over the past five years, fluctuating between 3.07 and 3.45. This ratio measures how efficiently the company collects its accounts receivable during a specific period. A higher receivables turnover ratio indicates that the company is able to collect payment from its customers more quickly.
Based on the data provided, Snap-On Inc's receivables turnover for the most recent year, December 31, 2024, stands at 3.30. This suggests that, on average, the company collects its accounts receivable approximately 3.30 times throughout the year. While there seems to have been a slight decrease from the previous year, the ratio remains within a close range, indicating consistent collection efficiency.
Overall, Snap-On Inc's receivables turnover ratio reflects a healthy ability to manage and collect its accounts receivable, which is a positive sign for the company's liquidity and cash flow management. Further analysis of industry benchmarks and trends over time can provide additional context for evaluating the company's performance in this area.
Peer comparison
Dec 31, 2024