Gates Industrial Corporation plc (GTES)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 4.09 | 3.86 |
| Receivables turnover | 4.04 | 4.20 | 4.47 | 4.13 | 3.92 | — | 4.33 | — | — | — | 4.78 | — | — | — | — | — | — | — | — | — |
| Payables turnover | 4.79 | 4.81 | 4.83 | 5.14 | 4.87 | — | 4.91 | — | — | — | 4.21 | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 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 | 2.37 | 2.46 |
Gates Industrial Corporation plc's activity ratios provide insights into how efficiently the company is managing its operations:
1. Inventory Turnover: This ratio measures how many times a company's inventory is sold and replaced over a period. Gates Industrial's inventory turnover has fluctuated slightly over the periods, averaging around 3.3 times per year. This indicates that the company is able to efficiently manage its inventory levels and convert inventory into sales.
2. Receivables Turnover: This ratio reflects how quickly a company collects its accounts receivable. Gates Industrial's receivables turnover has shown variations over the periods, with values ranging from 3.92 to 4.78. Higher turnover values suggest that the company is effective in collecting outstanding receivables in a timely manner.
3. Payables Turnover: Payables turnover indicates how efficiently a company pays its suppliers. Gates Industrial's payables turnover has also fluctuated, averaging around 4.8 times per year. A higher turnover implies that the company is managing its payment obligations effectively.
4. Working Capital Turnover: This ratio demonstrates how efficiently a company utilizes its working capital to generate revenue. Gates Industrial's working capital turnover has shown some fluctuations, with an average around 2.3 times per year. A higher turnover indicates that the company is effectively utilizing its working capital to support its operations and generate sales.
Overall, the activity ratios suggest that Gates Industrial Corporation plc is effectively managing its inventory, receivables, payables, and working capital to support its business operations and drive revenue generation.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 89.18 | 94.45 |
| Days of sales outstanding (DSO) | days | 90.34 | 86.93 | 81.65 | 88.40 | 93.04 | — | 84.37 | — | — | — | 76.40 | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 76.13 | 75.88 | 75.55 | 70.96 | 75.00 | — | 74.41 | — | — | — | 86.60 | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Gates Industrial Corporation plc have shown fluctuations over the past few quarters, ranging from a low of 89.18 days to a high of 120.15 days. This indicates the average number of days it takes for the company to sell its inventory, with higher numbers suggesting potential issues with inventory management efficiency.
The Days of Sales Outstanding (DSO) data is incomplete, with available figures varying widely from 76.40 days to 93.04 days. DSO represents the average number of days a company takes to collect revenue after a sale. A lower DSO is generally favorable as it indicates quicker cash conversion from sales.
The Number of Days of Payables for Gates Industrial Corporation plc has ranged from 70.96 days to 86.60 days, representing the average number of days it takes the company to pay its suppliers. Higher numbers may suggest that the company is taking longer to settle its payables, potentially indicating cash flow management strategies.
Overall, analyzing these activity ratios together can provide insights into the company's working capital management, inventory control, and efficiency in converting sales into cash. Further trend analysis and industry comparisons would be beneficial for a comprehensive evaluation of Gates Industrial Corporation plc's operational performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 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 | 0.42 | 0.43 |
Gates Industrial Corporation plc's long-term activity ratios indicate the efficiency in managing its assets to generate sales. The fixed asset turnover has shown a consistent upward trend, indicating that the company is efficiently utilizing its fixed assets to generate sales. This ratio increased from 4.26 in December 2019 to 5.81 in June 2024, demonstrating improved efficiency in using fixed assets over the years.
On the other hand, the total asset turnover ratio has fluctuated but generally remained stable over the same period. This ratio indicates that for each dollar of total assets the company holds, it generates revenue. The company's ability to generate sales from its total assets has shown some improvement, with the ratio increasing from 0.38 in September 2019 to 0.50 in June 2024.
Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that Gates Industrial Corporation plc has been successful in improving its efficiency in asset utilization over the analyzed period, which is a positive indicator of its operational performance and profitability potential.