Snap-On Inc (SNA)
Operating profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -452,900 | 2,251,800 | 1,330,100 | 1,323,500 | 1,310,400 | 1,296,500 | 1,271,800 | 1,239,800 | 1,207,200 | 1,194,700 | 1,176,700 | 1,150,800 | 1,123,500 | 1,108,800 | 1,088,200 | 950,900 | 880,500 | 829,400 | 806,800 | 908,600 |
| Revenue (ttm) | US$ in thousands | 5,108,400 | 5,103,000 | 5,109,800 | 5,114,600 | 5,108,300 | 5,058,700 | 4,994,300 | 4,932,600 | 4,842,500 | 4,793,500 | 4,728,700 | 4,674,000 | 4,601,700 | 4,574,300 | 4,476,700 | 4,117,300 | 3,942,200 | 3,813,500 | 3,772,000 | 3,998,500 |
| Operating profit margin | -8.87% | 44.13% | 26.03% | 25.88% | 25.65% | 25.63% | 25.47% | 25.13% | 24.93% | 24.92% | 24.88% | 24.62% | 24.41% | 24.24% | 24.31% | 23.10% | 22.34% | 21.75% | 21.39% | 22.72% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-452,900K ÷ $5,108,400K
= -8.87%
Snap-On Inc's operating profit margin has generally shown a positive trend over the observed period from March 31, 2020, to December 31, 2024. The margin increased consistently from 22.72% in March 2020 to a peak of 26.03% in June 2024, indicating the company's ability to control operating expenses and generate a higher proportion of profit from its operations.
However, there was a significant anomaly in the operating profit margin for the quarter ending September 30, 2024, where it spiked to 44.13%. This abnormally high margin could be due to certain unique or non-recurring factors that inflated profits for that quarter, warranting further investigation into the cause of this sudden increase.
Furthermore, the operating profit margin experienced a sharp decline to -8.87% in December 31, 2024, signaling a concerning reversal in profitability. This negative margin suggests that the company may have incurred significant operating losses during that period, possibly due to extraordinary expenses, impairments, or other adverse events impacting its operations.
In conclusion, while Snap-On Inc's operating profit margin demonstrated consistent growth for the most part of the period, the unusual spikes and the sudden plunge in profitability in certain quarters highlight the importance of closely monitoring and analyzing financial performance metrics to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2024