Snap-On Inc (SNA)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 1,360,500 1,001,500 757,200 780,000 923,400
Short-term investments US$ in thousands 349,000
Total current liabilities US$ in thousands 961,500 941,600 971,600 982,200 1,164,900
Cash ratio 1.41 1.06 0.78 0.79 1.09

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,360,500K + $—K) ÷ $961,500K
= 1.41

The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. For Snap-On Inc, the trend in the cash ratio from 2020 to 2024 shows some fluctuations.

As of December 31, 2020, Snap-On Inc had a cash ratio of 1.09, indicating that it had $1.09 in cash and cash equivalents for every $1 of short-term liabilities. The slightly above 1 ratio suggests a healthy liquidity position at the end of 2020.

However, the cash ratio decreased to 0.79 by December 31, 2021, and further decreased to 0.78 by the end of 2022. These declines may indicate a potential liquidity strain or a decrease in the cash position relative to short-term liabilities during these years.

By December 31, 2023, the cash ratio improved to 1.06, showing a slight recovery in liquidity compared to the previous years. This improvement suggests that Snap-On Inc may have enhanced its ability to cover short-term obligations using available cash.

The cash ratio significantly increased to 1.41 by December 31, 2024, indicating a notable improvement in liquidity position. This higher ratio suggests that Snap-On Inc had increased its cash reserves relative to short-term liabilities, potentially enhancing its ability to meet its obligations and weather any financial challenges.

Overall, the trend in Snap-On Inc's cash ratio highlights some fluctuations in liquidity over the years, with fluctuations possibly influenced by changes in the company's cash position and short-term liabilities. It is essential for investors and analysts to monitor these fluctuations to assess the company's ability to manage short-term financial obligations effectively.


Peer comparison

Dec 31, 2024