Snap-On Inc (SNA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,310,400 | 1,207,200 | 1,123,500 | 880,500 | 962,300 |
| Total assets | US$ in thousands | 7,544,900 | 6,972,800 | 6,759,700 | 6,557,300 | 5,693,500 |
| Operating ROA | 17.37% | 17.31% | 16.62% | 13.43% | 16.90% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,310,400K ÷ $7,544,900K
= 17.37%
Snap-On Inc's operating return on assets (ROA) has shown a generally positive trend over the past five years, with the ratio increasing from 16.90% in 2019 to 17.37% in 2023. This indicates that the company has been able to generate higher operating income relative to its total assets over this period.
The stability and improvement in operating ROA suggest that Snap-On Inc has been effectively utilizing its assets to generate operating profits. This can be seen as a positive sign of operational efficiency and profitability, as a higher operating ROA indicates that the company is deriving higher returns from its asset base.
The consistent performance of Snap-On Inc in terms of operating ROA reflects management's ability to effectively manage and allocate resources to drive operational performance. Investors and stakeholders may view this trend positively as it indicates the company's ability to generate profits from its core operations.
Overall, the improving trend in operating ROA for Snap-On Inc over the past five years indicates that the company has been successful in increasing its operating profitability relative to its asset base, which is a key indicator of efficient operations and financial health.
Peer comparison
Dec 31, 2023