Gates Industrial Corporation plc (GTES)

Cash ratio

Dec 31, 2024 Sep 30, 2024 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
Cash and cash equivalents US$ in thousands 682,000 574,400 579,700 522,200 720,600 556,800 565,000 594,900 578,400 395,300 393,200 406,800 658,200 540,600 473,300 447,400 521,400 672,300 639,700 626,300
Short-term investments US$ in thousands — — 32,300 32,400 27,000 39,500 38,400 31,100 33,300 26,000 15,100 — — — — — — — — —
Total current liabilities US$ in thousands 721,500 795,600 763,400 747,900 779,300 780,400 798,200 738,200 752,300 746,700 771,500 788,500 855,900 842,400 840,800 756,600 726,300 653,900 629,300 667,700
Cash ratio 0.95 0.72 0.80 0.74 0.96 0.76 0.76 0.85 0.81 0.56 0.53 0.52 0.77 0.64 0.56 0.59 0.72 1.03 1.02 0.94

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 for Gates Industrial Corporation plc has shown fluctuating trends over the periods from March 31, 2020, to December 31, 2024. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The cash ratio ranged from a low of 0.52 on March 31, 2022, to a high of 1.03 on September 30, 2020. A ratio below 1 suggests that the company may not have enough liquid assets to cover its current liabilities, while a ratio above 1 indicates a stronger ability to meet short-term obligations.

Overall, the company's cash ratio has shown some level of inconsistency, which could be due to various factors such as fluctuations in cash holdings, changes in short-term liabilities, or differences in revenue and expenses. It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's liquidity position accurately.