Snap-On Inc (SNA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,001,500 | 757,200 | 780,000 | 923,400 | 184,500 |
| Short-term investments | US$ in thousands | — | — | — | 349,000 | 17,100 |
| Total current liabilities | US$ in thousands | 941,600 | 971,600 | 982,200 | 1,164,900 | 947,600 |
| Cash ratio | 1.06 | 0.78 | 0.79 | 1.09 | 0.21 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,001,500K
+ $—K)
÷ $941,600K
= 1.06
The cash ratio of Snap-On Inc has varied over the past five years. As of December 31, 2023, the company's cash ratio stood at 1.06, indicating that it had $1.06 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement compared to the prior year when the cash ratio was 0.78.
In 2021 and 2022, the company's cash ratio remained relatively stable at around 0.79, indicating a steady level of liquidity to cover short-term obligations. However, the ratio significantly increased in 2020 to 1.09, suggesting a stronger cash position compared to previous years.
The cash ratio of 0.21 in 2019 was notably lower than the subsequent years, indicating a lower level of cash reserves relative to current liabilities at that time. Overall, the trend in the cash ratio implies that Snap-On Inc has made improvements in managing its liquidity position, with higher ratios reflecting better ability to meet short-term obligations with cash on hand.
Peer comparison
Dec 31, 2023