Gates Industrial Corporation plc (GTES)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,570,200 | 3,554,200 | 3,474,400 | 2,793,000 | 3,087,100 |
| Total current assets | US$ in thousands | 2,401,300 | 2,277,400 | 2,278,700 | 1,906,600 | 1,958,600 |
| Total current liabilities | US$ in thousands | 779,300 | 752,300 | 855,900 | 726,300 | 658,100 |
| Working capital turnover | 2.20 | 2.33 | 2.44 | 2.37 | 2.37 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,570,200K ÷ ($2,401,300K – $779,300K)
= 2.20
The working capital turnover ratio for Gates Industrial Corporation plc has shown a declining trend over the five-year period from 2019 to 2023. The ratio decreased from 2.37 in 2019 to 2.20 in 2023, implying a reduction in the company's ability to efficiently utilize its working capital to generate sales revenue. A lower working capital turnover ratio could indicate potential inefficiencies in managing the company's current assets and liabilities to support its operations. Further analysis of the company's working capital management practices and strategies may be warranted to address this downward trend and improve operational efficiency.
Peer comparison
Dec 31, 2023