Snap-On Inc (SNA)
Quick ratio
| 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 | US$ in thousands | 1,360,500 | 1,313,300 | 1,232,700 | 1,121,000 | 1,001,500 | 959,300 | 871,300 | 833,800 | 757,200 | 759,300 | 812,900 | 861,100 | 780,000 | 735,500 | 965,900 | 904,600 | 923,400 | 787,500 | 686,200 | 185,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 349,000 | — | — | — |
| Receivables | US$ in thousands | 1,545,900 | 1,543,200 | 1,513,400 | 1,549,000 | 1,506,200 | 1,493,900 | 1,487,000 | -31,200 | 1,433,800 | -28,800 | -28,100 | -28,400 | 1,335,000 | -31,500 | -29,500 | -25,800 | 1,283,400 | 1,264,300 | 1,169,700 | 1,241,700 |
| Total current liabilities | US$ in thousands | 961,500 | 956,400 | 950,100 | 989,700 | 941,600 | 981,900 | 962,300 | 999,000 | 971,600 | 993,500 | 986,100 | 1,024,100 | 982,200 | 979,700 | 1,222,100 | 1,234,100 | 1,164,900 | 1,117,000 | 829,400 | 921,900 |
| 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,360,500K
+ $—K
+ $1,545,900K)
÷ $961,500K
= 3.02
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that the company has enough liquid assets to cover its current liabilities.
Based on the provided data for Snap-On Inc, the quick ratio fluctuated over the analyzed period. The quick ratio ranged from a low of 0.71 on March 31, 2021, to a high of 3.02 on December 31, 2024. Notably, the quick ratio exceeded 1 for most of the quarters, suggesting that Snap-On Inc generally had sufficient liquid assets to cover its short-term obligations.
It is important to highlight that a quick ratio above 1 indicates that Snap-On Inc had more than enough liquid assets to cover its current liabilities, which is a positive sign of financial strength and stability. However, a rapid increase in the quick ratio over time may also indicate that the company is holding excessive amounts of cash or highly liquid assets, which could potentially be put to better use elsewhere in the business.
Overall, the trend of Snap-On Inc's quick ratio demonstrates a healthy liquidity position, with fluctuations reflecting changes in the company's short-term asset and liability levels. Analyzing the quick ratio alongside other financial metrics would provide a more comprehensive understanding of Snap-On Inc's financial health and efficiency in managing its liquidity.
Peer comparison
Dec 31, 2024