Snap-On Inc (SNA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,544,900 | 7,304,300 | 7,230,400 | 7,125,600 | 6,972,800 | 6,835,500 | 6,864,300 | 6,895,200 | 6,759,700 | 6,580,900 | 6,791,600 | 6,673,500 | 6,557,300 | 6,267,600 | 6,113,500 | 5,564,300 | 5,693,500 | 5,596,400 | 5,545,400 | 5,490,900 |
| 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 |
| Financial leverage ratio | 1.49 | 1.51 | 1.52 | 1.55 | 1.56 | 1.58 | 1.59 | 1.60 | 1.62 | 1.63 | 1.70 | 1.72 | 1.71 | 1.73 | 1.75 | 1.67 | 1.67 | 1.69 | 1.69 | 1.72 |
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 consistent upward trend over the past several quarters, indicating an increasing level of financial leverage. The ratio has ranged from 1.49 to 1.75 over the last few quarters. A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure.
The rising trend in the financial leverage ratio suggests that Snap-On Inc has been relying more on debt financing to support its operations and growth initiatives. While leverage can magnify returns when things are going well, it also increases financial risk, as the company has higher interest obligations and debt repayment requirements.
Investors and stakeholders should closely monitor Snap-On Inc's financial leverage ratio to ensure that the company maintains a healthy balance between debt and equity to support sustainable growth and financial stability. Any significant increase in the ratio may signal increased financial risk and should be carefully assessed.
Peer comparison
Dec 31, 2023