Market Cap : 12.18 B | Enterprise Value : 12.61 B | PE Ratio : 14.35 | PB Ratio : 2.82 |
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Snap-on's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $926 Mil. Snap-on's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $4,311 Mil. Therefore, Snap-on's annualized ROE % for the quarter that ended in Jun. 2022 was 21.48%.
The historical rank and industry rank for Snap-on's ROE % or its related term are showing as below:
During the past 13 years, Snap-on's highest ROE % was 22.47%. The lowest was 17.33%. And the median was 20.26%.
SNA's ROE % is ranked better thanThe historical data trend for Snap-on's ROE % 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.
For the Tools & Accessories subindustry, Snap-on's ROE %, along with its competitors' market caps and ROE % 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.
For the Industrial Products industry and Industrials sector, Snap-on's ROE % distribution charts can be found below:
* The bar in red indicates where Snap-on's ROE % falls into.
Snap-on's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as
ROE % | = | Net Income attributable to Common Stockholders (A: Dec. 2021 ) | / | ( (Total Stockholders Equity (A: Dec. 2020 ) | + | Total Stockholders Equity (A: Dec. 2021 )) | / count ) |
= | 820.5 | / | ( (3824.9 | + | 4181.9) | / 2 ) | |
= | 820.5 | / | 4003.4 | ||||
= | 20.50 % |
Snap-on's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as
ROE % | = | Net Income attributable to Common Stockholders (Q: Jun. 2022 ) | / | ( (Total Stockholders Equity (Q: Mar. 2022 ) | + | Total Stockholders Equity (Q: Jun. 2022 )) | / count ) |
= | 926 | / | ( (4298.3 | + | 4324.4) | / 2 ) | |
= | 926 | / | 4311.35 | ||||
= | 21.48 % |
* 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 ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
ROE %** | (Q: Jun. 2022 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 926 | / | 4311.35 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (926 / 4892) | * | (4892 / 6879.75) | * | (6879.75 / 4311.35) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 18.93 % | * | 0.7111 | * | 1.5957 |
= | ROA % | * | Equity Multiplier | ||
= | 13.46 % | * | 1.5957 | ||
= | 21.48 % |
With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.
The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:
ROE %** | (Q: Jun. 2022 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | 926 | / | 4311.35 | ||||||
= | (Net Income /Pre-Tax Income) | * | (Pre-Tax Income/Operating Income) | * | (Operating Income/Revenue) | * | (Revenue/Total Assets) | * | (Total Assets/Total Stockholders Equity) |
= | (926 / 1238) | * | (1238 / 1247.6) | * | (1247.6 / 4892) | * | (4892 / 6879.75) | * | (6879.75 / 4311.35) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.748 | * | 0.9923 | * | 25.5 % | * | 0.7111 | * | 1.5957 |
= | 21.48 % |
Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* 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.
** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.
Net income attributable to common stockholders is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Thank you for viewing the detailed overview of Snap-on's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
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 |
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