Snap-On Inc (SNA)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.19% | 98.53% | 98.24% | 96.97% | 97.27% |
| Operating profit margin | 25.65% | 24.93% | 24.41% | 22.34% | 23.66% |
| Pretax margin | 25.54% | 24.38% | 23.20% | 20.70% | 22.26% |
| Net profit margin | 19.79% | 18.83% | 17.83% | 15.90% | 17.05% |
Snap-On Inc has shown consistently high gross profit margins over the past five years, ranging from 96.97% to 98.53%. This indicates the company's ability to control production costs and generate profits from its core operations.
The operating profit margin has also been relatively stable, with an average of around 24.82% over the five-year period. This suggests effective cost management and operational efficiency in running the business.
The pretax margin has shown an increasing trend, reaching 25.54% in 2023 from 20.70% in 2020. This indicates that Snap-On Inc has been able to improve profitability before accounting for taxes over the years.
In terms of net profit margin, Snap-On Inc has achieved an average of 17.48% over the five-year period, with a noticeable improvement to 19.79% in 2023. This highlights the company's ability to generate profits relative to its total revenue, which is a key indicator of overall financial performance.
Overall, Snap-On Inc's profitability ratios demonstrate a strong performance, with consistent margins and improvements in profitability over the past few years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.37% | 17.31% | 16.62% | 13.43% | 16.90% |
| Return on assets (ROA) | 13.40% | 13.08% | 12.14% | 9.56% | 12.18% |
| Return on total capital | 21.65% | 21.67% | 20.89% | 17.38% | 21.91% |
| Return on equity (ROE) | 19.94% | 20.34% | 19.62% | 16.39% | 20.34% |
Snap-On Inc's profitability ratios show a positive trend over the past five years. The Operating Return on Assets (Operating ROA) has been consistently increasing, indicating that the company is effectively generating operating income relative to its total assets. This suggests that the company's operational efficiency and asset utilization have been improving.
Similarly, the Return on Assets (ROA) has also shown a positive trend, indicating that Snap-On Inc is effectively generating profits from its assets. This ratio has been steadily increasing over the years, reflecting the company's ability to generate earnings relative to its total assets.
The Return on Total Capital has also shown a steady increase, highlighting the company's efficient use of both equity and debt to generate profits. This ratio indicates the overall return generated from all forms of capital employed in the business.
Lastly, the Return on Equity (ROE) has fluctuated slightly but remains relatively stable and at a healthy level. This ratio measures the return generated for shareholders based on the equity invested in the company. The consistent and relatively high ROE signifies that Snap-On Inc is generating impressive returns for its shareholders.
Overall, Snap-On Inc's profitability ratios indicate a strong and improving financial performance, reflecting the company's efficient operational and capital management strategies.