GURUFOCUS.COM » STOCK LIST » USA » NYSE » Snap-on Inc (NYSE:SNA) » Definitions » Gross Margin %
Switch to:

Snap-on Gross Margin %

: 50.60% (As of Jun. 2022)
View and export this data going back to 1978. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Snap-on's Gross Profit for the three months ended in Jun. 2022 was $619 Mil. Snap-on's Revenue for the three months ended in Jun. 2022 was $1,223 Mil. Therefore, Snap-on's Gross Margin % for the quarter that ended in Jun. 2022 was 50.60%.


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

SNA' s Gross Margin % Range Over the Past 10 Years
Min: 48.29   Med: 50.87   Max: 51.78
Current: 51.08


During the past 13 years, the highest Gross Margin % of Snap-on was 51.78%. The lowest was 48.29%. And the median was 50.87%.

SNA's Gross Margin % is ranked better than
91.44% of 2699 companies
in the Industrial Products industry
Industry Median: 26.30 vs SNA: 51.08

Snap-on had a gross margin of 50.60% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Snap-on was 0.00% per year.


Snap-on Gross Margin % Historical Data

The historical data trend for Snap-on's Gross Margin % 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
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 51.08 51.59 51.38 50.66 51.78

Snap-on Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % 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 52.38 52.56 50.25 51.01 50.60

Competitive Comparison

For the Tools & Accessories subindustry, Snap-on's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

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



Snap-on Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Snap-on's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=2382.8 / 4601.7
=(Revenue - Cost of Goods Sold) / Revenue
=(4601.7 - 2218.9) / 4601.7
=51.78 %

Snap-on's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=618.8 / 1223
=(Revenue - Cost of Goods Sold) / Revenue
=(1223 - 604.2) / 1223
=50.60 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Snap-on  (NYSE:SNA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Snap-on had a gross margin of 50.60% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Snap-on Gross Margin % Related Terms

Thank you for viewing the detailed overview of Snap-on's Gross Margin % 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

Other Sources

Barrington Remains a Buy on Snap-on (SNA)

By tipranks.com 2022-02-07

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)