Gates Industrial Corporation plc (GTES)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 720,600 | 578,400 | 658,200 | 521,400 | 635,300 |
| Short-term investments | US$ in thousands | 27,000 | 33,300 | — | — | — |
| Total current liabilities | US$ in thousands | 779,300 | 752,300 | 855,900 | 726,300 | 658,100 |
| Cash ratio | 0.96 | 0.81 | 0.77 | 0.72 | 0.97 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($720,600K
+ $27,000K)
÷ $779,300K
= 0.96
The cash ratio of Gates Industrial Corporation plc has shown a fluctuating trend over the past five years. The ratio has ranged from 0.72 in 2020 to 0.97 in 2019. The cash ratio indicates the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio is generally seen as more favorable as it suggests that the company has sufficient liquid assets to meet its short-term obligations.
In the most recent year, as of December 31, 2023, the cash ratio stands at 0.96, showing an improvement from the previous year's ratio of 0.81. This increase indicates that Gates Industrial Corporation plc has enhanced its ability to cover its short-term liabilities with its available cash and cash equivalents. However, it is essential to continue monitoring this ratio in conjunction with other liquidity ratios to ensure the company's ongoing financial health and stability.
Peer comparison
Dec 31, 2023