Gates Industrial Corporation plc (GTES)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,401,300 | 2,277,400 | 2,278,700 | 1,906,600 | 1,958,600 |
| Total current liabilities | US$ in thousands | 779,300 | 752,300 | 855,900 | 726,300 | 658,100 |
| Current ratio | 3.08 | 3.03 | 2.66 | 2.63 | 2.98 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,401,300K ÷ $779,300K
= 3.08
The current ratio of Gates Industrial Corporation plc has shown a generally increasing trend over the past five years, improving from 2.98 in 2019 to 3.08 in 2023. This indicates that the company's ability to meet its short-term liabilities with its current assets has strengthened over the years.
The current ratio exceeding 1 suggests that the company has more current assets than current liabilities, providing a cushion for short-term financial obligations. A current ratio above 2 is typically considered healthy, indicating a strong liquidity position. Gates Industrial Corporation plc has consistently maintained a current ratio above 2, reflecting a robust liquidity position and a reduced risk of financial distress in the short term.
The current ratio of over 3.0 in 2023 indicates an even stronger liquidity position compared to the previous years, which may be due to effective management of current assets and liabilities. In conclusion, based on the current ratio trend, Gates Industrial Corporation plc appears to be in a strong financial position concerning its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023