Snap-On Inc (SNA)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,354,400 | 1,335,200 | 1,306,000 | 1,266,700 | 1,227,500 | 1,208,500 | 1,181,400 | 1,151,100 | 1,120,600 | 1,104,000 | 1,082,300 | 943,600 | 870,100 | 819,200 | 797,600 | 899,500 | 954,300 | 959,600 | 959,700 | 957,800 |
| Long-term debt | US$ in thousands | 1,184,600 | 1,184,400 | 1,184,200 | 1,184,000 | 1,183,800 | 1,183,600 | 1,183,400 | 1,183,200 | 1,182,900 | 1,182,700 | 1,182,500 | 1,182,300 | 1,182,100 | 1,181,800 | 1,436,700 | 948,200 | 946,900 | 947,500 | 947,900 | 946,700 |
| Total stockholders’ equity | US$ in thousands | 5,071,300 | 4,830,200 | 4,757,100 | 4,610,200 | 4,481,300 | 4,317,200 | 4,324,400 | 4,298,300 | 4,181,900 | 4,047,300 | 4,003,400 | 3,876,000 | 3,824,900 | 3,619,000 | 3,486,700 | 3,331,300 | 3,409,100 | 3,303,800 | 3,288,100 | 3,197,600 |
| Return on total capital | 21.65% | 22.20% | 21.98% | 21.86% | 21.67% | 21.97% | 21.45% | 21.00% | 20.89% | 21.11% | 20.87% | 18.65% | 17.38% | 17.06% | 16.20% | 21.02% | 21.91% | 22.57% | 22.66% | 23.11% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,354,400K ÷ ($1,184,600K + $5,071,300K)
= 21.65%
Snap-On Inc has demonstrated relatively consistent return on total capital over the past few quarters, averaging around 21% to 22%. This indicates that the company has been efficient in generating profits relative to the total capital invested in the business. The gradual increase in return on total capital from 2019 to 2020 followed by a slight decline and then stabilization suggests that Snap-On Inc has been effectively utilizing its total capital to drive earnings. Overall, the company's ability to maintain a return on total capital above 20% consistently reflects a solid performance in managing its capital structure and generating profitability.
Peer comparison
Dec 31, 2023