Gates Industrial Corporation plc (GTES)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,408,200 | 3,442,100 | 3,484,300 | 3,535,100 | 3,570,200 | 3,600,200 | 3,588,000 | 3,558,500 | 3,554,200 | 3,476,500 | 3,478,200 | 3,486,500 | 3,474,400 | 3,453,000 | 3,302,800 | 2,964,200 | 2,793,000 | 2,724,500 | 2,758,900 | 2,992,300 |
| Property, plant and equipment | US$ in thousands | 576,300 | 605,000 | 599,600 | 619,200 | 627,300 | 615,700 | 633,800 | 639,800 | 634,000 | 618,200 | 633,300 | 665,400 | 666,200 | 678,600 | 692,800 | 688,700 | 700,900 | 677,000 | 671,200 | 801,300 |
| Fixed asset turnover | 5.91 | 5.69 | 5.81 | 5.71 | 5.69 | 5.85 | 5.66 | 5.56 | 5.61 | 5.62 | 5.49 | 5.24 | 5.22 | 5.09 | 4.77 | 4.30 | 3.98 | 4.02 | 4.11 | 3.73 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,408,200K ÷ $576,300K
= 5.91
The fixed asset turnover of Gates Industrial Corporation plc has shown an increasing trend over the analysed period from March 31, 2020, to December 31, 2024. The ratio has consistently improved, indicating that the company is generating more revenue relative to its investment in fixed assets. This signifies operational efficiency, as higher fixed asset turnover ratios generally imply better utilization of assets to generate sales.
The fixed asset turnover ratio reached its highest point of 5.91 by December 31, 2024, indicating that the company generated $5.91 in sales for every dollar invested in fixed assets. The steady increase in this ratio suggests that Gates Industrial Corporation plc has been effectively managing and leveraging its fixed assets to drive revenue growth over time.
Overall, the progressively rising fixed asset turnover ratio reflects positively on the company's operational performance and efficiency in utilizing its fixed assets to generate sales. It indicates that Gates Industrial Corporation plc has been successful in maximizing the productivity of its fixed assets to generate revenue throughout the analysed period.
Peer comparison
Dec 31, 2024