Snap-On Inc (SNA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,001,500 | 757,200 | 780,000 | 923,400 | 184,500 |
| Short-term investments | US$ in thousands | — | — | — | 349,000 | 17,100 |
| Receivables | US$ in thousands | 1,506,200 | 1,433,800 | 1,335,000 | 1,283,400 | 1,325,400 |
| Total current liabilities | US$ in thousands | 941,600 | 971,600 | 982,200 | 1,164,900 | 947,600 |
| Quick ratio | 2.66 | 2.26 | 2.15 | 2.19 | 1.61 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,001,500K
+ $—K
+ $1,506,200K)
÷ $941,600K
= 2.66
The quick ratio of Snap-On Inc has shown a generally positive trend over the past five years, indicating the company's ability to meet its short-term obligations with its most liquid assets.
The quick ratio has improved from 1.61 in 2019 to 2.66 in 2023, demonstrating an enhanced liquidity position and a stronger ability to cover immediate liabilities with its quick assets. This increase suggests that Snap-On Inc has enough liquid assets, such as cash and marketable securities, to meet its short-term financial obligations comfortably.
The company's quick ratio has consistently remained above 1, indicating that Snap-On Inc has a sufficient level of liquid assets relative to current liabilities. This is a favorable indication of the company's financial health and its ability to manage short-term liquidity risks effectively.
Overall, the trend of increasing quick ratios over the years reflects positively on Snap-On Inc's liquidity management and suggests a strong financial position that supports its ability to meet short-term obligations in a timely manner.
Peer comparison
Dec 31, 2023