Gates Industrial Corporation plc (GTES)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 4.54 | 3.93 | 4.04 | 4.20 | 4.47 | 4.13 | 3.92 | — | 4.33 | — | — | — | 4.78 | — | — | — | — | — | — | — |
| Payables turnover | 5.02 | 4.87 | 4.79 | 4.81 | 4.83 | 5.14 | 4.87 | — | 4.91 | — | — | — | 4.21 | — | — | — | — | — | — | — |
| Working capital turnover | 2.15 | 2.14 | 2.16 | 2.30 | 2.20 | 2.34 | 2.28 | 2.20 | 2.33 | 2.36 | 2.36 | 2.46 | 2.44 | 2.50 | 2.58 | 2.39 | 2.37 | 1.96 | 2.07 | 2.25 |
Gates Industrial Corporation plc's inventory turnover ratio has shown fluctuation over the past few years, ranging from 2.87 to 3.55, with a decreasing trend towards the end of the period, indicating a longer time to sell inventory.
The receivables turnover ratio was not available for the earlier periods but showed an increasing trend from 4.78 to 4.54 from December 31, 2021, to December 31, 2024. This suggests the company is collecting its receivables more efficiently over time.
The payables turnover ratio, while not reported for earlier periods, ranged from 4.79 to 5.14 in the later years, indicating the company is taking longer to pay its suppliers.
The working capital turnover ratio fluctuated between 1.96 and 2.58 during the period under review, showing variations in how effectively the company is using its working capital to generate sales.
Overall, the trend in these activity ratios suggests that Gates Industrial Corporation plc may need to focus on managing its inventory levels more efficiently and potentially improving its payment practices to suppliers while maintaining an effective use of working capital to drive sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 120.38 | 127.08 | 120.15 | 113.84 | 106.83 | 103.93 | 102.68 | 105.16 | 103.97 | 111.40 | 114.35 | 119.83 | 116.69 | 113.15 | 106.59 | 106.34 | 105.50 | 102.61 | 103.10 | 92.99 |
| Days of sales outstanding (DSO) | days | 80.46 | 92.78 | 90.34 | 86.93 | 81.65 | 88.40 | 93.04 | — | 84.37 | — | — | — | 76.40 | — | — | — | — | — | — | — |
| Number of days of payables | days | 72.69 | 74.97 | 76.13 | 75.88 | 75.55 | 70.96 | 75.00 | — | 74.41 | — | — | — | 86.60 | — | — | — | — | — | — | — |
Gates Industrial Corporation plc's activity ratios reveal insights into the efficiency of its operations.
1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates the average number of days it takes for Gates Industrial to sell its inventory.
- Over the past years, DOH has been increasing steadily, indicating that the company may be holding onto inventory for longer periods.
- A higher DOH may signify slower inventory turnover or potential issues in managing inventory levels efficiently.
2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for Gates Industrial to collect revenue after a sale has been made.
- The data shows that DSO was not available for the initial periods but started being reported from December 31, 2021.
- A decreasing trend in DSO over time is positive as it signifies faster collection of revenue from customers.
3. Number of Days of Payables:
- This metric reflects the average number of days it takes for Gates Industrial to pay its suppliers.
- A decreasing trend in the number of days of payables may indicate possible improved cash management or favorable payment terms negotiated with suppliers.
In summary, while Gates Industrial has shown increasing days of inventory on hand, it has managed to reduce the number of days of payables and days of sales outstanding in recent periods. This suggests a need for the company to focus on optimizing its inventory management practices to enhance operational efficiency further.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.50 | 0.48 | 0.50 | 0.50 | 0.49 | 0.51 | 0.49 | 0.49 | 0.49 | 0.49 | 0.48 | 0.47 | 0.46 | 0.46 | 0.44 | 0.40 | 0.38 | 0.37 | 0.38 | 0.42 |
The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. For Gates Industrial Corporation plc, the ratio improved steadily from 3.73 in March 2020 to 5.91 in December 2024, indicating a positive trend of increasing efficiency in generating sales from its fixed assets over the years.
On the other hand, the Total Asset Turnover ratio reflects the company's overall efficiency in generating sales from all its assets. Gates Industrial Corporation plc saw fluctuations in this ratio, ranging from 0.37 to 0.51, with some periods showing slight improvements and others remaining stable. Overall, the company's ability to generate sales from its total assets is within a reasonable range, but it could benefit from further enhancements in asset utilization efficiency.
In conclusion, Gates Industrial Corporation plc has shown significant improvement in utilizing its fixed assets to generate sales, as evidenced by the consistent increase in the Fixed Asset Turnover ratio. However, there is room for improvement in optimizing the utilization of its total assets, as indicated by the fluctuations in the Total Asset Turnover ratio.