Gates Industrial Corporation plc (GTES)

Quick 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 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 — — — — — — — — —
Receivables US$ in thousands 751,300 875,000 862,400 841,900 798,600 871,900 914,600 — 821,600 — — — 727,200 — — — — — — —
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
Quick ratio 1.99 1.82 1.93 1.87 1.98 1.88 1.90 0.85 1.91 0.56 0.53 0.52 1.62 0.64 0.56 0.59 0.72 1.03 1.02 0.94

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($682,000K + $—K + $751,300K) ÷ $721,500K
= 1.99

The quick ratio of Gates Industrial Corporation plc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In March 2020, the quick ratio was 0.94, indicating that the company had $0.94 in highly liquid assets available to cover $1 of current liabilities. The ratio improved slightly by June 2020 to 1.02 and further to 1.03 by September 2020, suggesting an increased ability to cover short-term obligations.

However, there was a significant drop in the quick ratio by December 2020, falling to 0.72, which could indicate potential liquidity challenges or an increase in current liabilities. This trend continued into the first quarter of 2021, with a quick ratio of 0.59, reflecting a further decline in the company's ability to meet short-term obligations.

The quick ratio improved slightly by June 2021 to 0.56 and continued to show fluctuations over the subsequent quarters. By December 2021, the quick ratio saw a significant improvement to 1.62, indicating a substantial increase in liquidity and the ability to cover short-term obligations comfortably.

While there were fluctuations in the quick ratio throughout 2022, it generally remained below 1, suggesting that the company may have had difficulty meeting its short-term obligations with its current liquid assets. However, by the end of December 2022, there was a notable increase in the quick ratio to 1.91, indicating a strengthened liquidity position.

The quick ratio continued to improve in the following quarters, reaching its peak at 1.99 by December 2024. This ratio indicates that Gates Industrial Corporation plc had almost $2 in highly liquid assets to cover $1 of current liabilities, portraying a robust ability to meet short-term obligations.

Overall, the trend in the quick ratio of Gates Industrial Corporation plc demonstrates fluctuations and improvements in its liquidity position over the analyzed period, reflecting variations in the company's ability to meet short-term financial obligations with its liquid assets.