Snap-On Inc (SNA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,544,900 | 6,972,800 | 6,759,700 | 6,557,300 | 5,693,500 |
| Total stockholders’ equity | US$ in thousands | 5,071,300 | 4,481,300 | 4,181,900 | 3,824,900 | 3,409,100 |
| Financial leverage ratio | 1.49 | 1.56 | 1.62 | 1.71 | 1.67 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,544,900K ÷ $5,071,300K
= 1.49
The financial leverage ratio of Snap-On Inc has shown a decreasing trend over the past five years, declining from 1.67 in 2019 to 1.49 in 2023. This indicates that the company's reliance on debt to finance its operations has reduced over this period. A lower financial leverage ratio suggests a lower level of financial risk as the company is less leveraged and has a lower proportion of debt in its capital structure compared to equity. Snap-On Inc's decreasing trend in financial leverage ratio may indicate a more conservative financial strategy and reduced exposure to financial distress. Overall, the trend in the financial leverage ratio reflects a more balanced and sustainable capital structure for the company.
Peer comparison
Dec 31, 2023