Snap-On Inc (SNA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,043,900 | 1,011,100 | 911,700 | 820,500 | 627,000 |
| Total stockholders’ equity | US$ in thousands | 5,394,100 | 5,071,300 | 4,481,300 | 4,181,900 | 3,824,900 |
| ROE | 19.35% | 19.94% | 20.34% | 19.62% | 16.39% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,043,900K ÷ $5,394,100K
= 19.35%
Snap-On Inc's return on equity (ROE) has shown a positive trend over the years, increasing from 16.39% in December 2020 to 19.35% in December 2024. This indicates that the company has been effectively utilizing its equity to generate profits for shareholders.
The 2022 and 2023 ROE values of 20.34% and 19.94%, respectively, represent the peak levels during the period under consideration, indicating a strong performance in these years. However, there was a slight dip in ROE in 2024 to 19.35%, which could be a point of concern for investors as it represents a decrease from the previous year.
Overall, Snap-On Inc's ROE performance demonstrates a consistent ability to generate returns for shareholders, with the company maintaining relatively healthy profitability levels throughout the period. It would be important for stakeholders to monitor future ROE trends to ensure sustained value creation.
Peer comparison
Dec 31, 2024