Gates Industrial Corporation plc (GTES)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 478,700 462,600 384,000 484,100 211,100
Total assets US$ in thousands 6,786,300 7,254,500 7,191,600 7,533,000 7,426,300
Operating ROA 7.05% 6.38% 5.34% 6.43% 2.84%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $478,700K ÷ $6,786,300K
= 7.05%

The operating return on assets (ROA) of Gates Industrial Corporation plc has shown a positive trend over the past five years. Starting at 2.84% on December 31, 2020, the operating ROA increased steadily to reach 7.05% by December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate operating profits. The consistent improvement in operating ROA reflects the company's ability to generate more operating income per unit of asset employed. This trend suggests that Gates Industrial Corporation plc has been efficient in managing its operations and maximizing returns on its assets over the years.