Snap-On Inc (SNA)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,345,700 | 1,354,400 | 1,227,500 | 1,120,600 | 870,100 |
| Interest expense | US$ in thousands | 49,600 | 49,900 | 47,100 | 53,100 | 54,000 |
| Interest coverage | 27.13 | 27.14 | 26.06 | 21.10 | 16.11 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,345,700K ÷ $49,600K
= 27.13
Snap-On Inc's interest coverage has shown a consistent improvement over the past five years. The interest coverage ratio, which measures the company's ability to meet its interest payments, has increased steadily from 16.11 in 2020 to 27.13 in 2024. This indicates that Snap-On Inc has been generating significantly more operating income relative to its interest expense, signaling a strong financial position and the ability to comfortably meet its interest obligations. The consistent upward trend in the interest coverage ratio reflects a positive financial performance and suggests that the company has been effectively managing its debt levels and operating profitably.
Peer comparison
Dec 31, 2024