Snap-on (BUE:SNA) ROCE %

: 21.57% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Snap-on's annualized ROCE % for the quarter that ended in Dec. 2023 was 21.57%.

Snap-on ROCE % Historical Data

The historical data trend for Snap-on's ROCE % 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.

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Snap-on Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

25.78

20.03

22.52

26.36

29.35

Snap-on Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																23.88	24.34	25.51	25.05	21.57

Snap-on ROCE % Calculation

Snap-on's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	497421.9	/	( ( (1168989.888 - 162888.735)	+	(2723708.902 - 339917.6) )	/ 2 )
	=	497421.9	/	( (1006101.153	+	2383791.302)	/ 2 )
	=	497421.9	/	1694946.2275
	=	29.35 %

Snap-on's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	495725.2	/	( ( (2556139.855 - 343615.914)	+	(2723708.902 - 339917.6) )	/ 2 )
	=	495725.2	/	( ( 2212523.941	+	2383791.302 )	/ 2 )
	=	495725.2	/	2298157.6215
	=	21.57 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Snap-on (BUE:SNA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Snap-on ROCE % Related Terms

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Snap-on (BUE:SNA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Snap-on Inc (BUE:SNA) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SNA:USA SPU:Germany SPU:Germany S1NA34:Brazil

Address

2801 80th Street, Kenosha, WI, USA, 53143

Website

https://www.snapon.com

Snap-on manufactures 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. Its finance arm provides financing to franchisees to run their operations, which includes offering loans and leases for mobile vans.