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Snap-on Altman Z-Score

: 5.76 (As of Today)
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Good Sign:

Altman Z-score of 5.69 is strong.

Snap-on has a Altman Z-Score of 5.76, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

SNA' s Altman Z-Score Range Over the Past 10 Years
Min: 2.54   Med: 4.41   Max: 9.46
Current: 5.69

During the past 13 years, Snap-on's highest Altman Z-Score was 9.46. The lowest was 2.54. And the median was 4.41.


Snap-on Altman Z-Score Historical Data

The historical data trend for Snap-on's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.13 4.89 5.21 4.55 5.49

Snap-on Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score 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 5.27 5.48 5.49 5.37 5.38

Competitive Comparison

For the Tools & Accessories subindustry, Snap-on's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

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

* The bar in red indicates where Snap-on's Altman Z-Score falls into.



Snap-on Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Snap-on's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.327+1.4*0.8735+3.3*0.1753+0.6*4.7987+1.0*0.6889
=5.76

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $6,864 Mil.
Total Current Assets was $3,231 Mil.
Total Current Liabilities was $986 Mil.
Retained Earnings was $5,996 Mil.
Pre-Tax Income was 309.5 + 290.2 + 293.2 + 262.4 = $1,155 Mil.
Interest Expense was -11.7 + -11.6 + -11.3 + -13.2 = $-48 Mil.
Revenue was 1223 + 1185.5 + 1195.2 + 1125 = $4,729 Mil.
Market Cap (Today) was $12,081 Mil.
Total Liabilities was $2,518 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(3230.7 - 986.1)/6864.3
=0.327

X2=Retained Earnings/Total Assets
=5996.2/6864.3
=0.8735

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1155.3 - -47.8)/6864.3
=0.1753

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=12080.625/2517.5
=4.7987

X5=Revenue/Total Assets
=4728.7/6864.3
=0.6889

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Snap-on has a Altman Z-Score of 5.76 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Snap-on  (NYSE:SNA) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Snap-on Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Snap-on's Altman Z-Score 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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