Gates Industrial Corporation plc (GTES)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,306,000 | 2,401,300 | 2,277,400 | 2,278,700 | 1,906,600 |
| Total current liabilities | US$ in thousands | 721,500 | 779,300 | 752,300 | 855,900 | 726,300 |
| Current ratio | 3.20 | 3.08 | 3.03 | 2.66 | 2.63 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,306,000K ÷ $721,500K
= 3.20
The current ratio of Gates Industrial Corporation plc has shown a consistent upward trend over the past five years. Starting at 2.63 on December 31, 2020, the ratio has steadily increased to 3.20 by December 31, 2024. This indicates that the company's current assets have been increasing at a faster pace than its current liabilities, demonstrating a strong liquidity position. A current ratio above 1.0 suggests that the company is able to meet its short-term obligations using its current assets. The gradual improvement in the current ratio over the years reflects positively on the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024