Snap-On Inc (SNA)

Snap-On Inc's solvency ratios demonstrate a consistent improvement in its financial leverage position over the years. The Debt-to-assets ratio decreased from 0.18 in December 2020 to 0.15 in December 2024, indicating that the company's total debt as a percentage of its total assets has declined. Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also showed a downward trend, decreasing from 0.24 and 0.31 in December 2020 to 0.18 and 0.22 in December 2024, respectively. This suggests that Snap-On Inc has been reducing its reliance on debt to fund its operations and has strengthened its financial position. The Financial leverage ratio showed a consistent decline from 1.71 in December 2020 to 1.46 in December 2024, indicating a lower proportion of debt in the company's capital structure, which is a positive sign for its solvency and financial health.

---

Coverage ratios

The interest coverage ratio of Snap-On Inc has exhibited a consistent and positive trend over the past five years, increasing from 16.11 in December 2020 to 27.13 in December 2024. This indicates the company's ability to comfortably meet its interest obligations using its operating income. The steady improvement in the interest coverage ratio reflects the company's strength in generating earnings relative to its interest expenses, suggesting a healthier financial position and lower risk of default. Overall, the upward trajectory in the interest coverage ratio demonstrates Snap-On Inc's strong financial performance and efficient management of its debt obligations.