Snap-On Inc (SNA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,345,700 | 1,354,400 | 1,227,500 | 1,120,600 | 870,100 |
| Long-term debt | US$ in thousands | 1,185,500 | 1,184,600 | 1,183,800 | 1,182,900 | 1,182,100 |
| Total stockholders’ equity | US$ in thousands | 5,394,100 | 5,071,300 | 4,481,300 | 4,181,900 | 3,824,900 |
| Return on total capital | 20.45% | 21.65% | 21.67% | 20.89% | 17.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,345,700K ÷ ($1,185,500K + $5,394,100K)
= 20.45%
Snap-On Inc's return on total capital has shown a positive trend over the past five years, increasing from 17.38% in December 31, 2020, to 20.45% in December 31, 2024. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors. The upward trajectory reflects improved efficiency in deploying capital towards profitable investments and projects. The relatively consistent increase in return on total capital demonstrates management's ability to enhance the company's profitability and create value for its stakeholders. Overall, Snap-On Inc's solid performance in this aspect suggests a strong financial position and sound operational management.
Peer comparison
Dec 31, 2024