Gates Industrial Corporation plc (GTES)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,306,000 | 2,400,500 | 2,376,500 | 2,287,100 | 2,401,300 | 2,317,900 | 2,374,400 | 2,356,800 | 2,277,400 | 2,216,900 | 2,247,000 | 2,206,600 | 2,278,700 | 2,223,000 | 2,122,500 | 1,999,000 | 1,906,600 | 2,046,100 | 1,959,400 | 1,997,900 |
| 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 |
| Current ratio | 3.20 | 3.02 | 3.11 | 3.06 | 3.08 | 2.97 | 2.97 | 3.19 | 3.03 | 2.97 | 2.91 | 2.80 | 2.66 | 2.64 | 2.52 | 2.64 | 2.63 | 3.13 | 3.11 | 2.99 |
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 fluctuations over the periods reported. The ratio stood at a healthy 2.99 as of March 31, 2020, indicating that the company had approximately 3 times more current assets than current liabilities to cover its short-term obligations. The ratio improved slightly to 3.11 by June 30, 2020, and continued to increase to 3.13 by September 30, 2020, demonstrating further strengthening of the company's liquidity position.
However, there was a decline in the current ratio to 2.63 by December 31, 2020, which may have raised concerns about the company's ability to meet its short-term obligations. The ratio remained relatively low at 2.64 as of March 31, 2021, and June 30, 2021. Subsequently, there was a slight decline to 2.52 by September 30, 2021, indicating a potential strain on the company's liquidity.
The current ratio gradually improved to 2.80 by March 31, 2022, and further increased to 2.91 by June 30, 2022, showing a positive trend in liquidity management. The ratio continued to rise, reaching 3.03 by December 31, 2022, and peaking at 3.19 by March 31, 2023. This indicated that the company significantly strengthened its ability to cover short-term obligations with its current assets.
However, there was a slight decrease to 2.97 by June 30, 2023, and this level was maintained through September 30, 2023. The ratio then increased again to 3.08 by December 31, 2023, and remained relatively stable around 3.06 to 3.20 from March 31, 2024, to December 31, 2024. Overall, Gates Industrial Corporation plc has demonstrated the ability to manage its short-term liquidity effectively over the periods analyzed, with the ratio consistently above 2 indicating a healthy liquidity position.
Peer comparison
Dec 31, 2024