Snap-On Inc (SNA)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3,333.41 | 3,879.05 | 3,845.25 | 4,906.27 | 5,546.13 | 6,444.59 | 6,449.77 | 6,457.36 | 7,182.50 | 6,875.97 | 5,906.78 | 5,274.19 | 4,276.78 | 3,787.17 | 3,620.97 | 3,273.79 | 2,886.36 | 2,730.00 | 2,514.59 | 2,275.32 |
| Days of sales outstanding (DSO) | days | 110.46 | 110.38 | 108.10 | 110.54 | 107.62 | 107.79 | 108.67 | — | 108.07 | — | — | — | 105.89 | — | — | — | 118.83 | 121.01 | 113.19 | 113.35 |
| Number of days of payables | days | 939.53 | 1,051.76 | 1,080.26 | 1,301.26 | 1,312.24 | 1,773.84 | 1,690.59 | 1,742.52 | 1,995.33 | 2,197.92 | 2,039.90 | 1,814.62 | 1,477.03 | 1,280.14 | 1,333.42 | 1,057.78 | 861.85 | 735.71 | 597.21 | 581.90 |
| Cash conversion cycle | days | 2,504.33 | 2,937.67 | 2,873.10 | 3,715.55 | 4,341.51 | 4,778.54 | 4,867.86 | 4,714.84 | 5,295.24 | 4,678.05 | 3,866.88 | 3,459.57 | 2,905.64 | 2,507.04 | 2,287.56 | 2,216.01 | 2,143.34 | 2,115.30 | 2,030.56 | 1,806.77 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3,333.41 + 110.46 – 939.53
= 2,504.33
The cash conversion cycle of Snap-On Inc has shown fluctuations over the years. Starting from around 1,800 days in March 2020, the cycle gradually increased to reach a peak of over 5,000 days by the end of 2022. Subsequently, there was a noticeable decline in the cycle, dropping to around 2,500 days by the end of December 2024.
The increasing trend in the cash conversion cycle from 2020 to 2022 indicates that Snap-On Inc took longer to convert its investments in inventory and accounts receivable into cash during that period. This could be attributed to slower inventory turnover and collection of accounts receivable, potentially signaling inefficiencies in managing working capital.
However, the significant decrease in the cycle from 2022 to 2024 suggests that Snap-On Inc made improvements in managing its working capital, leading to a more efficient conversion of investments into cash. This could be due to better inventory management, streamlined operations, or enhanced collection practices.
Overall, the fluctuating trend in the cash conversion cycle of Snap-On Inc highlights the company's evolving working capital management strategies and performance over the analyzed period.
Peer comparison
Dec 31, 2024