Snap-On Inc (SNA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,354,400 | 1,227,500 | 1,120,600 | 870,100 | 954,300 |
| Long-term debt | US$ in thousands | 1,184,600 | 1,183,800 | 1,182,900 | 1,182,100 | 946,900 |
| Total stockholders’ equity | US$ in thousands | 5,071,300 | 4,481,300 | 4,181,900 | 3,824,900 | 3,409,100 |
| Return on total capital | 21.65% | 21.67% | 20.89% | 17.38% | 21.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,354,400K ÷ ($1,184,600K + $5,071,300K)
= 21.65%
Snap-On Inc's return on total capital has demonstrated relatively stable performance over the past five years. The company's return on total capital ranged from 17.38% in 2020 to 21.91% in 2019, indicating consistently strong returns generated from the capital employed in its operations. Despite experiencing a slight decrease to 20.89% in 2021, the metric rebounded to 21.67% in 2022 and 21.65% in 2023, showcasing the company's ability to efficiently utilize its capital to generate profits. This consistent performance suggests that Snap-On Inc has been effectively managing its investment in assets and operations to generate returns for its stakeholders.
Peer comparison
Dec 31, 2023