Snap-On Inc (SNA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,071,300 | 4,481,300 | 4,181,900 | 3,824,900 | 3,409,100 |
| ROE | 19.94% | 20.34% | 19.62% | 16.39% | 20.34% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,011,100K ÷ $5,071,300K
= 19.94%
Snap-On Inc's return on equity (ROE) has demonstrated a relatively stable performance over the past five years, ranging from 16.39% in 2020 to 20.34% in 2019 and 2022. The ROE for 2023 stands at 19.94%, indicating a slight decrease compared to the previous year.
ROE is a measure of a company's profitability that shows how efficiently it is utilizing its shareholders' equity to generate profit. Snap-On Inc's ROE levels above 15% generally indicate that the company is effectively generating profit from the shareholders' investments.
Although the ROE has fluctuated slightly over the years, the company has been able to maintain a healthy ROE above the 15% threshold consistently, reflective of its ability to generate profits from shareholders' equity. It is essential for investors to continue monitoring the ROE trend to assess Snap-On Inc's financial performance and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2023