Revenue during the quarter grew 5.38 percent to $964 million from $914.80 million in the previous year period. Gross margin for the quarter expanded 141 basis points over the previous year period to 51.40 percent. Total expenses were 76.38 percent of quarterly revenues, down from 77.34 percent for the same period last year. This has led to an improvement of 96 basis points in operating margin to 23.62 percent.

Operating income for the quarter was $227.70 million, compared with $207.30 million in the previous year period.

“Our fourth quarter was an encouraging finish to 2016 as we achieved an 11.3% increase in diluted earnings per share, 3.6% organic sales growth, and a 19.8% operating margin before financial services representing a gain of 70 basis points year over year,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “We also concluded two coherent acquisitions in the quarter, Car-O-Liner and Sturtevant Richmont, both of which further enhance and expand Snap-on’s capabilities in serving serious professionals performing critical tasks in workplaces of consequence around the world. In 2017, we expect to make continued progress through our Snap-on Value Creation Processes and, at the same time, advance further along each of our strategic runways for growth: enhance the franchise network, expand with repair shop owners and managers, extend in critical industries and build in emerging markets. As always, I thank our franchisees and associates for their significant contributions to our team. Without their dedication, capability and commitment, the encouraging results of the fourth quarter and the continuing positive trends of the year would not have been possible.”

The company has spent $473.40 million cash to meet investing activities during the year as against cash outgo of $306.40 million in the last year. It has incurred net capital expenditure of $72.10 million on net basis during the year, down 6.24 percent or $4.80 million from year ago.

The company has spent $107.20 million cash to carry out financing activities during the year as against cash outgo of $226 million in the last year period.

Cash and cash equivalents stood at $77.60 million as on Dec. 31, 2016, down 16.38 percent or $15.20 million from $92.80 million on Jan. 02, 2016.

Working capital drops significantly
Snap-on Inc has witnessed a decline in the working capital over the last year. It stood at $894.50 million as at Dec. 31, 2016, down 27.17 percent or $333.70 million from $1,228.20 million on Jan. 02, 2016. Current ratio was at 1.90 as on Dec. 31, 2016, down from 2.83 on Jan. 02, 2016.