The business behind the dividend
| Measure | SNA | Median | Formula |
|---|---|---|---|
| Return on equity | 17.1% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 18.7% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.04bn | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.01bn | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 28.2% | 14.3% | Operating income ÷ revenue |
| Net margin | 21.6% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.20x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 26.29x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 4.79x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.34x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.06x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -0.8% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2024 | 2023 | 2022 | 2022 | 2021 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 17.1% | 19.4% | 19.9% | 20.3% | 19.6% | 16.4% | 20.3% | 21.9% | 18.9% | 20.9% | 19.6% |
| Return on capital employed | 18.7% | 20.5% | 20.9% | 21.3% | 20.9% | 16.7% | 21.1% | 23.6% | 22.3% | 24.8% | 20.9% |
| Operating margin | 28.2% | 28.8% | 27.9% | 27.0% | 26.6% | 24.7% | 25.9% | 25.7% | 22.1% | 23.2% | 25.9% |
| Net margin | 21.6% | 22.3% | 21.5% | 20.4% | 19.4% | 17.6% | 18.7% | 18.3% | 13.9% | 14.7% | 18.7% |
| Debt to equity | 0.20x | 0.22x | 0.23x | 0.26x | 0.29x | 0.37x | 0.34x | 0.31x | 0.34x | 0.33x | 0.29x |
| Current ratio | 4.79x | 4.15x | 3.88x | 3.47x | 3.11x | 2.65x | 2.51x | 2.33x | 1.78x | 1.90x | 2.65x |
| Cash conversion | 1.06x | 1.17x | 1.14x | 0.74x | 1.18x | 1.61x | 0.97x | 1.12x | 1.09x | 1.05x | 1.09x |
How it compares in industrials
Among the 289 industrials companies here measured on free cash flow, Snap-on pays out less than 62 of them. The median for that group is 24.4%, against this company’s 46.0%.
Closest on free cash flow
- RTX (RTX) 45.0%
- Lockheed Martin (LMT) 45.3%
- Eaton (ETN) 45.8%
- Johnson Controls International (JCI) 46.0%
Same sector and same denominator, so the figures are comparable. All 348 in industrials →