Snap-On Inc (SNA)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,011,100 | 911,700 | 820,500 | 627,000 | 693,500 |
| Total assets | US$ in thousands | 7,544,900 | 6,972,800 | 6,759,700 | 6,557,300 | 5,693,500 |
| ROA | 13.40% | 13.08% | 12.14% | 9.56% | 12.18% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,011,100K ÷ $7,544,900K
= 13.40%
Return on assets (ROA) is a key financial metric that indicates how efficiently a company is utilizing its assets to generate profits. Snap-On Inc's ROA has shown a positive trend over the past five years, with a consistent increase from 9.56% in 2020 to 13.40% in 2023. This indicates that the company has been able to improve its profitability relative to its total assets.
The average ROA for Snap-On Inc over the five-year period is 12.47%. This suggests that, on average, the company has generated approximately 12.47 cents in profit for every dollar of assets it holds.
The relatively consistent and increasing trend in ROA indicates that Snap-On Inc has effectively managed its assets to drive profitability over the years. Investors and stakeholders may view this as a positive indicator of the company's ability to generate returns on its investments in assets.
Peer comparison
Dec 31, 2023