C

Snap-On Incorporated — Earnings Quality Grade C

SNA · Industrials

Some red flags

Revenue
$5.2B
2025
Net Income
$1.0B
2025
Gross Margin
51.7%
Free Cash Flow
$1.0B
01

Screening Summary

13
Passed
1
Watch
1
Failed
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 62 days, change +4 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 0.9%, CFFO -11.2%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 8.7% vs COGS 1.4%. Normal

B2CapEx vs Revenue

CapEx growth -9.0% vs revenue 0.9%. Normal

B3SG&A Ratio

Insufficient data

B4Gross Margin

Gross margin 51.7%, change -0.2pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.06. Profits backed by cash

C2Free Cash Flow

FCF $1.0B, FCF/NI = 0.99

C3Accruals Ratio

Accruals ratio = -0.8%. Low accruals

C4Cash vs Debt

Cash $1.6B covers debt $1.3B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $1.4B = 23% of equity. Manageable

D2Leverage

Debt/EBITDA = 0.9x. Healthy

!
D3Soft Asset Growth

Other assets grew 45.1% vs revenue 0.9%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 4% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

Insufficient data

05

Altman Z-Score

9.51
Safe Zone
0 Distress1.102.605.0+ Safe
0.4142
Liquidity
0.9673
Cumulative profit
0.1648
Operating efficiency
2.4157
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10

Snap-On Incorporated (SNA) Earnings Quality Grade C — EarningsGrade