Snap-On Inc (SNA)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.15 0.15 0.15 0.15 0.16 0.16 0.16 0.17 0.17 0.17 0.17 0.17 0.17 0.18 0.17 0.18 0.18 0.19 0.24 0.17
Debt-to-capital ratio 0.18 0.18 0.18 0.19 0.19 0.20 0.20 0.20 0.21 0.22 0.21 0.22 0.22 0.23 0.23 0.23 0.24 0.25 0.29 0.22
Debt-to-equity ratio 0.22 0.22 0.22 0.23 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
Financial leverage ratio 1.46 1.45 1.47 1.49 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

Snap-On Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.

The Debt-to-assets ratio has been relatively stable, decreasing from 0.24 in June 2020 to 0.15 in June 2024. This suggests that Snap-On has been effectively managing its debt in proportion to its assets over the years.

The Debt-to-capital ratio shows a declining trend from 0.29 in June 2020 to 0.18 in December 2024. This indicates that Snap-On's debt relative to its total capital has been decreasing, which is a positive sign for the company's long-term financial health.

The Debt-to-equity ratio has also shown a downward trend, decreasing from 0.41 in June 2020 to 0.22 in December 2024. This suggests that Snap-On has been relying less on debt financing and more on equity, which could indicate a stronger financial position.

The Financial leverage ratio has decreased steadily from 1.75 in June 2020 to 1.46 in December 2024, showing that the company's reliance on debt to finance its operations has been decreasing over the years. This trend indicates improved financial stability and reduced risk associated with excessive leverage.

Overall, the solvency ratios of Snap-On Inc demonstrate a positive trajectory, with decreasing debt relative to assets, capital, and equity, along with a declining financial leverage ratio. This suggests that the company has been effectively managing its debt and improving its financial health over the years.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage -8.89 45.69 27.48 27.40 27.14 27.03 26.76 26.44 26.06 26.05 24.72 22.84 21.10 19.30 18.72 16.58 16.11 16.16 16.31 18.78

The interest coverage ratio for Snap-On Inc has shown a generally positive trend over the period of March 31, 2020, to December 31, 2024. The ratio started at 18.78 in March 2020 and increased steadily to reach its peak at 45.69 in September 30, 2024, indicating the company's improving ability to meet its interest obligations.

However, there was a significant decrease in the interest coverage ratio in December 2024 to -8.89, which suggests that the company's earnings before interest and taxes were not sufficient to cover its interest expenses during that period. This anomaly should be investigated further to understand the reasons behind this sudden decline.

Overall, the upward trend in the interest coverage ratio for most of the period indicates that Snap-On Inc has been effectively managing its interest expenses and generating enough income to cover its interest obligations. It is important for the company to maintain a healthy interest coverage ratio to ensure its financial stability and ability to meet debt obligations.