Gates Industrial Corporation plc (GTES)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 682,000 720,600 578,400 658,200 521,400
Short-term investments US$ in thousands — 27,000 33,300 — —
Total current liabilities US$ in thousands 721,500 779,300 752,300 855,900 726,300
Cash ratio 0.95 0.96 0.81 0.77 0.72

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($682,000K + $—K) ÷ $721,500K
= 0.95

The cash ratio of Gates Industrial Corporation plc has shown an improving trend over the past five years, increasing from 0.72 in December 31, 2020, to 0.95 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has strengthened over the period. A higher cash ratio implies a better liquidity position, as the company has more cash on hand relative to its current liabilities. This trend suggests a positive financial health and the ability of Gates Industrial Corporation plc to meet its immediate obligations without relying heavily on external financing.