Gates Industrial Corporation plc (GTES)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 720,600 | 578,400 | 658,200 | 521,400 | 635,300 |
| Short-term investments | US$ in thousands | 27,000 | 33,300 | — | — | — |
| Receivables | US$ in thousands | 798,600 | 821,600 | 727,200 | 723,600 | 716,800 |
| Total current liabilities | US$ in thousands | 779,300 | 752,300 | 855,900 | 726,300 | 658,100 |
| Quick ratio | 1.98 | 1.91 | 1.62 | 1.71 | 2.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($720,600K
+ $27,000K
+ $798,600K)
÷ $779,300K
= 1.98
The quick ratio of Gates Industrial Corporation plc has demonstrated varying trends over the past five years. The ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventories.
In 2023, the quick ratio was 1.98, indicating that the company had $1.98 in liquid assets available to cover each dollar of current liabilities. This represents an improvement from the previous year's quick ratio of 1.91. The increase in the quick ratio suggests that Gates Industrial Corporation plc has enhanced its liquidity position, potentially due to increased cash or marketable securities.
Comparing 2023 to 2022, the company's liquidity position has strengthened. However, it is important to note that the quick ratio was higher in 2019 at 2.05, suggesting that Gates Industrial Corporation plc may have had even stronger liquidity in that year. Overall, the quick ratio for the company has shown fluctuations but generally indicates a healthy ability to meet its short-term obligations with liquid assets excluding inventory.
Peer comparison
Dec 31, 2023