Snap-On Inc (SNA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.68% | 98.19% | 98.53% | 98.24% | 96.97% |
| Operating profit margin | 26.34% | 25.65% | 24.93% | 24.41% | 22.34% |
| Pretax margin | 26.39% | 25.54% | 24.38% | 23.20% | 20.70% |
| Net profit margin | 20.43% | 19.79% | 18.83% | 17.83% | 15.90% |
Snap-On Inc has shown a consistent improvement in its profitability margins over the past five years. The gross profit margin has steadily increased from 96.97% in December 2020 to 97.68% in December 2024, indicating the company's ability to effectively manage its production and distribution costs.
Similarly, the operating profit margin has shown a positive trend, rising from 22.34% in December 2020 to 26.34% in December 2024. This indicates the company's operational efficiency and effectiveness in generating profits from its core business activities.
The pretax margin, which reflects the company's profitability before accounting for taxes, has also shown a consistent increase from 20.70% in December 2020 to 26.39% in December 2024. This points to Snap-On Inc's ability to efficiently manage its operating expenses and generate higher profits.
Lastly, the net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has shown a steady growth from 15.90% in December 2020 to 20.43% in December 2024. This indicates the company's ability to improve its overall profitability and deliver value to its shareholders.
In conclusion, Snap-On Inc has demonstrated strong profitability ratios over the past five years, showcasing efficient cost management, operational effectiveness, and overall financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.04% | 17.37% | 17.31% | 16.62% | 13.43% |
| Return on assets (ROA) | 13.22% | 13.40% | 13.08% | 12.14% | 9.56% |
| Return on total capital | 20.45% | 21.65% | 21.67% | 20.89% | 17.38% |
| Return on equity (ROE) | 19.35% | 19.94% | 20.34% | 19.62% | 16.39% |
Snap-On Inc's profitability ratios have shown a positive trend over the past five years.
- Operating return on assets (Operating ROA) has increased steadily from 13.43% in 2020 to 17.04% in 2024. This indicates that the company's ability to generate profits from its operating activities relative to its total assets has improved.
- Return on assets (ROA) has also shown a consistent increase, rising from 9.56% in 2020 to 13.22% in 2024. This suggests that Snap-On Inc's overall efficiency in generating profits from its assets has strengthened.
- Return on total capital has shown a similar upward trajectory, growing from 17.38% in 2020 to 20.45% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE) has fluctuated slightly but remained relatively stable, with a range between 19.35% and 20.34% over the five-year period. This indicates the company's ability to generate profits for its shareholders from their investment.
Overall, Snap-On Inc's profitability ratios demonstrate a positive performance, indicating effective management of assets and capital to generate returns for investors.