Snap-On Inc (SNA)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.19 | 0.21 | 0.22 | 0.24 | 0.22 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,184,600K ÷ ($1,184,600K + $5,071,300K)
= 0.19
The debt-to-capital ratio of Snap-On Inc has exhibited a decreasing trend over the past five years, indicating an improved financial leverage position. As of December 31, 2023, the ratio stands at 0.19, down from 0.21 in 2022. This suggests that Snap-On Inc relies less on debt financing relative to its total capital structure. The decrease in the debt-to-capital ratio signifies a lower proportion of debt in the company's overall capitalization and may indicate increased financial stability and lower risk of financial distress. Snap-On Inc's ability to reduce its debt relative to its total capital over the years reflects a prudent approach to managing its capital structure and financial obligations.
Peer comparison
Dec 31, 2023