Gates Industrial Corporation plc (GTES)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,049,700 | 2,081,200 | 2,115,800 | 2,171,300 | 2,211,300 | 2,269,000 | 2,290,700 | 2,287,700 | 2,303,600 | 2,249,600 | 2,220,100 | 2,187,900 | 2,135,200 | 2,098,300 | 2,015,200 | 1,839,800 | 1,758,300 | 1,730,200 | 1,765,800 | 1,901,300 |
| Inventory | US$ in thousands | 676,000 | 724,600 | 696,500 | 677,200 | 647,200 | 646,100 | 644,400 | 659,100 | 656,200 | 686,600 | 695,500 | 718,300 | 682,600 | 650,500 | 588,500 | 536,000 | 508,200 | 486,400 | 498,800 | 484,400 |
| Inventory turnover | 3.03 | 2.87 | 3.04 | 3.21 | 3.42 | 3.51 | 3.55 | 3.47 | 3.51 | 3.28 | 3.19 | 3.05 | 3.13 | 3.23 | 3.42 | 3.43 | 3.46 | 3.56 | 3.54 | 3.93 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,049,700K ÷ $676,000K
= 3.03
The inventory turnover ratio for Gates Industrial Corporation plc has shown fluctuations over the given period. The ratio decreased from 3.93 on March 31, 2020, to 2.87 on September 30, 2024, before recovering slightly to 3.03 on December 31, 2024. The general trend indicates a gradual decline in inventory turnover efficiency, implying that the company is holding on to its inventory for a longer duration before selling it. This could potentially tie up working capital and lead to increased storage costs and obsolescence risks. Gates Industrial Corporation plc may need to reevaluate its inventory management practices to improve efficiency and free up resources for more productive uses.
Peer comparison
Dec 31, 2024
Dec 31, 2024