Snap-On Inc (SNA)
Working capital 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 |
| Total current assets | US$ in thousands | 3,989,400 | 3,652,000 | 3,368,900 | 3,053,400 | 3,083,000 |
| Total current liabilities | US$ in thousands | 961,500 | 941,600 | 971,600 | 982,200 | 1,164,900 |
| Working capital turnover | 1.69 | 1.88 | 2.02 | 2.22 | 2.06 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,108,400K ÷ ($3,989,400K – $961,500K)
= 1.69
The working capital turnover for Snap-On Inc has been fluctuating over the past five years. In December 2020, the working capital turnover was 2.06, indicating that the company generated $2.06 in revenue for every dollar of working capital employed. This ratio improved slightly to 2.22 by December 2021, suggesting more efficient utilization of working capital.
However, in the following years, the working capital turnover declined. By December 2024, the ratio had decreased to 1.69, signifying a lower level of revenue generation relative to working capital. This trend could potentially indicate inefficiencies in managing working capital or challenges in generating revenue from the assets deployed.
Overall, although Snap-On Inc experienced some improvement in working capital turnover initially, the decreasing trend in recent years suggests a need for the company to focus on optimizing its working capital management to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024