Snap-On Inc (SNA)
Total asset 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 |
| Total assets | US$ in thousands | 7,544,900 | 6,972,800 | 6,759,700 | 6,557,300 | 5,693,500 |
| Total asset turnover | 0.68 | 0.69 | 0.68 | 0.60 | 0.71 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,108,300K ÷ $7,544,900K
= 0.68
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue relative to its total assets. Snap-On Inc's total asset turnover has shown some fluctuation over the past five years, ranging from 0.60 to 0.71. The ratio indicates that, on average, Snap-On Inc generates sales equal to approximately 68-71% of its total assets annually.
A total asset turnover ratio of less than 1 may suggest that Snap-On Inc is not effectively utilizing its assets to generate sales. It indicates that the company may require a relatively high level of assets to support its revenue generation. The fluctuations observed in the total asset turnover ratio over the years may signify changes in the company's operational efficiency and asset utilization.
Overall, a sustained improvement in total asset turnover would indicate that Snap-On Inc is becoming more efficient in utilizing its assets to generate revenue, which could lead to improved profitability and financial performance in the future. Further analysis of the company's operations and strategies would provide deeper insights into the factors influencing its total asset turnover ratio.
Peer comparison
Dec 31, 2023