Snap-On Inc (SNA)

Liquidity ratios

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
Current ratio 4.15 4.18 4.06 3.82 3.88 3.67 3.67 3.48 3.47 3.29 3.28 3.16 3.11 3.04 2.58 2.47 2.65 2.63 3.34 2.50
Quick ratio 3.02 2.99 2.89 2.70 2.66 2.50 2.45 0.80 2.26 0.74 0.80 0.81 2.15 0.72 0.77 0.71 2.19 1.84 2.24 1.55
Cash ratio 1.41 1.37 1.30 1.13 1.06 0.98 0.91 0.83 0.78 0.76 0.82 0.84 0.79 0.75 0.79 0.73 1.09 0.71 0.83 0.20

Snap-On Inc's current ratio has shown a consistent increase over the past few years, indicating a strong ability to cover its short-term liabilities with current assets. The ratio has steadily improved from 2.50 in March 2020 to 4.15 in December 2024, surpassing industry benchmarks.

In contrast, the quick ratio, which provides a more stringent measure of liquidity excluding inventory, initially fluctuated but stabilized in recent periods. Snap-On Inc's quick ratio was volatile in the earlier years but has shown an improving trend from 0.71 in March 2021 to 3.02 in December 2024, indicating a healthy ability to meet short-term obligations without relying heavily on inventory liquidation.

The cash ratio, reflecting the company's ability to cover current liabilities with its most liquid assets, has also shown an upward trend. Snap-On Inc's cash ratio increased significantly from 0.20 in March 2020 to 1.41 in December 2024, indicating a strong cash position and ability to meet short-term obligations without relying on other current assets.

Overall, Snap-On Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have exhibited positive trends over the past few years, reflecting a solid liquidity position and ability to meet its short-term financial obligations effectively.

Additional liquidity measure

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
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

The cash conversion cycle of Snap-On Inc has exhibited significant fluctuations over the past few years. The company's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown a general increasing trend.

From March 31, 2020, to December 31, 2024, the cash conversion cycle increased from 1,806.77 days to 2,504.33 days. This suggests that Snap-On Inc is taking longer periods to generate cash from its operational activities, which can indicate inefficiencies in managing its working capital.

The company experienced a notable spike in the cash conversion cycle from March 31, 2022, to December 31, 2022, where the cycle jumped from 3,459.57 days to 5,295.24 days. This sharp increase may imply challenges in managing inventory levels, collecting receivables, or optimizing payables effectively within the business operations.

However, there was a slight decrease in the cash conversion cycle from December 31, 2022, to June 30, 2024, where the cycle dropped from 5,295.24 days to 2,873.10 days. This improvement could indicate enhanced efficiency in working capital management during this period.

Overall, the increasing trend in the cash conversion cycle for Snap-On Inc suggests a potential need for the company to focus on streamlining its working capital processes, optimizing inventory management techniques, and enhancing collections and payment procedures to improve cash flow efficiency.