Gates Industrial Corporation plc (GTES)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,570,200 | 3,554,200 | 3,474,400 | 2,793,000 | 3,087,100 |
| Property, plant and equipment | US$ in thousands | 627,300 | 634,000 | 666,200 | 700,900 | 725,100 |
| Fixed asset turnover | 5.69 | 5.61 | 5.22 | 3.98 | 4.26 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,570,200K ÷ $627,300K
= 5.69
Fixed asset turnover measures how efficiently a company generates sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue. Gates Industrial Corporation plc has shown a consistently strong fixed asset turnover over the past five years, with values ranging from 3.98 in 2020 to 5.69 in 2023. This suggests that the company has been successful in generating sales relative to its investment in fixed assets. The increasing trend in fixed asset turnover indicates improving efficiency in utilizing fixed assets over time, which is a positive sign for the company's operational performance and asset management. Overall, Gates Industrial Corporation plc has demonstrated effective utilization of its fixed assets to drive revenue generation.
Peer comparison
Dec 31, 2023