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Snap-on ROA %

: 13.46% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Snap-on's annualized Net Income for the quarter that ended in Jun. 2022 was $926 Mil. Snap-on's average Total Assets over the quarter that ended in Jun. 2022 was $6,880 Mil. Therefore, Snap-on's annualized ROA % for the quarter that ended in Jun. 2022 was 13.46%.

The historical rank and industry rank for Snap-on's ROA % or its related term are showing as below:

SNA' s ROA % Range Over the Past 10 Years
Min: 8.08   Med: 11.13   Max: 12.82
Current: 12.82

During the past 13 years, Snap-on's highest ROA % was 12.82%. The lowest was 8.08%. And the median was 11.13%.

SNA's ROA % is ranked better than
91.64% of 2764 companies
in the Industrial Products industry
Industry Median: 4.07 vs SNA: 12.82

Snap-on ROA % Historical Data

The historical data trend for Snap-on's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Snap-on Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.18 12.80 12.53 10.24 12.32

Snap-on Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.36 11.74 13.41 12.74 13.46

Competitive Comparison

For the Tools & Accessories subindustry, Snap-on's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Snap-on ROA % Distribution

For the Industrial Products industry and Industrials sector, Snap-on's ROA % distribution charts can be found below:

* The bar in red indicates where Snap-on's ROA % falls into.



Snap-on ROA % Calculation

Snap-on's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=820.5/( (6557.3+6759.7)/ 2 )
=820.5/6658.5
=12.32 %

Snap-on's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=926/( (6895.2+6864.3)/ 2 )
=926/6879.75
=13.46 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


Snap-on  (NYSE:SNA) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=926/6879.75
=(Net Income / Revenue)*(Revenue / Total Assets)
=(926 / 4892)*(4892 / 6879.75)
=Net Margin %*Asset Turnover
=18.93 %*0.7111
=13.46 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Snap-on ROA % Related Terms

Thank you for viewing the detailed overview of Snap-on's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Snap-on Business Description

Snap-on logo
Address
2801 80th Street, Kenosha, WI, USA, 53143
Snap-on is a manufacturer of premium tools and software for repair professionals. Hand tools are sold through franchisee-operated mobile vans that serve auto technicians who purchase tools at their own expense. A unique element of its business model is that franchisees bear significant risk, as they must invest in the mobile van, inventory, and software. At the same time, franchisees extend personal credit directly to technicians on an individual tool basis. Snap-on currently operates three segments-repair systems and information, commercial and industrial, and tools. The company's finance arm provides financing to franchisees to run their operations, which includes offering loans and leases for mobile vans.
Executives
Ozolins Marty V. officer: Vice President & Controller 2801 80TH STREET KENOSHA WI 53143
Arregui Jesus officer: Sr VP & President - Commercial 2801 80TH STREET KENOSHA WI 53143
Chambers Timothy L officer: Sr VP & Pres - Tools 2801 80TH STREET KENOSHA WI 53143
Miller Richard Thomas officer: VP, Gen Counsel & Secretary 2801 80TH STREET KENOSHA WI 53143
Lemerand June C officer: VP & Chief Information Officer 2801 80TH STREET KENOSHA WI 53143
Strege Richard K officer: Vice President & Controller 2801 80TH STREET KENOSHA WI 53143
Adams David Charles director C/O CURTISS-WRIGHT CORPORATION 4 BECKER FARM ROAD ROSELAND NJ 07068
Banerjee Anup R officer: Sr VP & Chief Devel. Officer 2801 80TH STREET KENOSHA WI 53143
Stebbins Donald J director C/O WABCO HOLDINGS INC. ONE CENTENNIAL AVENUE PISCATAWAY NJ 08855
Gillis Ruth Ann M director 10 SOUTH DEERBORN STREET 37TH FLOOR CHICAGO IL 80603
Knueppel Henry W director 200 STATE STREET BELOIT WI 53511
Sherrill Gregg M director 5757 N. GREEN BAY AVENUE P.O. BOX 591 MILWAUKEE WI 53201-0591
Pagliari Aldo John officer: SVP-Finance & CFO 2801 80TH STREET KENOSHA WI 53143
Jones Nathan J director DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Lehman William Dudley director

Snap-on Headlines

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