Snap-On Inc (SNA)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,185,500K ÷ ($1,185,500K + $5,394,100K)
= 0.18
The debt-to-capital ratio of Snap-On Inc has exhibited a declining trend over the past five years, decreasing from 0.24 on December 31, 2020, to 0.18 on December 31, 2024. This indicates that the company has been able to lower its reliance on debt funding in relation to its total capital structure over the period. A decreasing debt-to-capital ratio generally suggests a stronger financial position and less financial risk for a company. Snap-On Inc's improving debt-to-capital ratio reflects a more conservative approach to financing its operations, potentially enhancing its long-term financial stability and creditworthiness.
Peer comparison
Dec 31, 2024