Gates Industrial Corporation plc (GTES)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,087,100 | 3,153,500 |
| Property, plant and equipment | US$ in thousands | 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 | 725,100 | 721,100 |
| Fixed asset turnover | 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 | 4.26 | 4.37 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,484,300K ÷ $599,600K
= 5.81
The fixed asset turnover ratio for Gates Industrial Corporation plc has exhibited fluctuations over the past several quarters. The ratio ranged from 3.98 to 5.85 during the period analyzed.
The company experienced a general upward trend in fixed asset turnover from the end of 2019 through the first quarter of 2022, with the ratio steadily increasing from 3.73 to 5.24 during this period. However, the ratio fluctuated around this peak level in subsequent quarters, showing slight declines and rebounds but generally maintaining above 5.
A high fixed asset turnover ratio indicates that the company is generating a significant amount of sales relative to its investment in fixed assets. This can be a positive signal of operational efficiency, as the company is effectively utilizing its assets to generate revenue.
It is essential for Gates Industrial Corporation plc to monitor its fixed asset turnover ratio consistently to ensure optimal asset utilization and efficiency in its operations. Any significant deviations from the historical trend should be carefully analyzed to understand the underlying reasons and take appropriate strategic actions.
Peer comparison
Jun 30, 2024