Snap-On Inc (SNA)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,108,300 | 5,058,700 | 4,994,300 | 4,932,600 | 4,842,500 | 4,793,500 | 4,728,700 | 4,674,000 | 4,601,700 | 4,574,300 | 4,476,700 | 4,117,300 | 3,942,200 | 3,813,500 | 3,772,000 | 3,998,500 | 4,067,700 | 4,063,800 | 4,058,000 | 4,059,200 |
| Total current assets | US$ in thousands | 3,652,000 | 3,605,000 | 3,533,400 | 3,481,200 | 3,368,900 | 3,269,600 | 3,230,700 | 3,236,000 | 3,053,400 | 2,974,300 | 3,149,700 | 3,052,500 | 3,083,000 | 2,938,200 | 2,772,400 | 2,303,100 | 2,380,500 | 2,347,900 | 2,306,600 | 2,265,300 |
| Total current liabilities | US$ in thousands | 941,600 | 981,900 | 962,300 | 999,000 | 971,600 | 993,500 | 986,100 | 1,024,100 | 982,200 | 979,700 | 1,222,100 | 1,234,100 | 1,164,900 | 1,117,000 | 829,400 | 921,900 | 947,600 | 990,100 | 930,800 | 936,000 |
| Working capital turnover | 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 | 2.84 | 2.99 | 2.95 | 3.05 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,108,300K ÷ ($3,652,000K – $941,600K)
= 1.88
Snap-On Inc's working capital turnover has shown fluctuation over the past 20 quarters, ranging from a low of 1.88 to a high of 3.05. The working capital turnover measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is efficiently managing its working capital.
It is observed that the working capital turnover ratio has generally been on an increasing trend from 2019 to 2020, reaching a peak of 3.05 in the fourth quarter of 2019. This suggests that Snap-On Inc was effectively generating sales revenue relative to its working capital during that period.
However, starting from 2021, the working capital turnover ratio has shown some volatility, with fluctuations in the range of 1.94 to 2.32. Despite the fluctuations, the ratios have remained above 2.0, indicating that the company continues to efficiently utilize its working capital to generate revenue, albeit at a slightly slower pace compared to the peak levels seen in 2019.
Overall, Snap-On Inc's working capital turnover ratios demonstrate a generally efficient management of working capital in generating sales revenue, albeit with some variability in recent quarters. Further evaluation of the company's liquidity and operating efficiency ratios would provide a more comprehensive view of its financial performance.
Peer comparison
Dec 31, 2023