Snap-On Inc (SNA)
Debt-to-equity ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.23 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.29 | 0.30 | 0.31 | 0.31 | 0.33 | 0.41 | 0.28 | 0.28 | 0.29 | 0.29 | 0.30 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,184,600K ÷ $5,071,300K
= 0.23
The debt-to-equity ratio of Snap-On Inc has been relatively stable over the past few years, hovering around the range of 0.23 to 0.31. This ratio indicates the proportion of debt used to finance the company's assets compared to shareholders' equity.
The trend in the debt-to-equity ratio shows that the company has maintained a conservative level of leverage, with a healthy balance between debt and equity financing. A lower ratio indicates that the company relies less on debt funding, which can be seen as a positive sign of financial stability and lower financial risk.
The slight increase in the ratio from 0.23 to 0.31 over the period indicates a gradual growth in the company's debt relative to equity. This could be a result of strategic decisions to leverage debt for expansion or investment opportunities.
Overall, the debt-to-equity ratio analysis suggests that Snap-On Inc has managed its debt levels effectively, maintaining a balance between debt and equity financing to support its operations and growth strategies.
Peer comparison
Dec 31, 2023