Gates Industrial Corporation plc (GTES)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,408,200 | 3,570,200 | 3,554,200 | 3,474,400 | 2,793,000 |
| Property, plant and equipment | US$ in thousands | 576,300 | 627,300 | 634,000 | 666,200 | 700,900 |
| Fixed asset turnover | 5.91 | 5.69 | 5.61 | 5.22 | 3.98 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,408,200K ÷ $576,300K
= 5.91
Based on the provided data, Gates Industrial Corporation plc's fixed asset turnover has shown a consistent improvement over the years. The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate revenue.
In December 31, 2020, the fixed asset turnover ratio was 3.98, indicating that for every dollar invested in fixed assets, the company generated $3.98 in revenue.
By December 31, 2024, the fixed asset turnover had increased to 5.91, reflecting an enhancement in efficiency in utilizing fixed assets to generate revenue. This trend suggests that the company has been able to generate more revenue relative to its investment in fixed assets, which is a positive signal for investors and creditors.
The consistent increase in fixed asset turnover over the years showcases the company's ability to effectively utilize its fixed assets and generate revenue efficiently. Overall, the trend indicates improving operational efficiency and asset utilization within Gates Industrial Corporation plc.
Peer comparison
Dec 31, 2024