Gates Industrial Corporation plc (GTES)
Working capital 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 |
| Total current assets | US$ in thousands | 2,376,500 | 2,287,100 | 2,401,300 | 2,317,900 | 2,374,400 | 2,356,800 | 2,277,400 | 2,216,900 | 2,247,000 | 2,206,600 | 2,278,700 | 2,223,000 | 2,122,500 | 1,999,000 | 1,906,600 | 2,046,100 | 1,959,400 | 1,997,900 | 1,958,600 | 1,863,900 |
| Total current liabilities | US$ in thousands | 763,400 | 747,900 | 779,300 | 780,400 | 798,200 | 738,200 | 752,300 | 746,700 | 771,500 | 788,500 | 855,900 | 842,400 | 840,800 | 756,600 | 726,300 | 653,900 | 629,300 | 667,700 | 658,100 | 583,200 |
| 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 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,484,300K ÷ ($2,376,500K – $763,400K)
= 2.16
The working capital turnover ratio for Gates Industrial Corporation plc has shown a consistent trend over the past few quarters, indicating the company's efficiency in generating sales relative to its working capital levels. The ratios have ranged between 1.96 and 2.58, with the most recent ratio being 2.16 as of June 30, 2024.
A working capital turnover ratio above 1 indicates that the company is effectively utilizing its working capital to generate sales. A higher ratio suggests that the company is able to generate more sales with a lower investment in working capital, which is a positive sign of operational efficiency.
Although there have been fluctuations in the ratio over the quarters, the general trend has been relatively stable, with some slight variations. It is important for the company to monitor this ratio regularly to ensure that working capital is being managed efficiently to support sales growth and operational activities.
Overall, the working capital turnover ratio for Gates Industrial Corporation plc indicates that the company has been effectively managing its working capital to drive sales, which is a positive indicator of its operational performance.
Peer comparison
Jun 30, 2024