Gates Industrial Corporation plc (GTES)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 462,600 | 384,000 | 484,100 | 211,100 | 346,800 |
| Total assets | US$ in thousands | 7,254,500 | 7,191,600 | 7,533,000 | 7,426,300 | 7,411,300 |
| Operating ROA | 6.38% | 5.34% | 6.43% | 2.84% | 4.68% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $462,600K ÷ $7,254,500K
= 6.38%
Gates Industrial Corporation plc's operating return on assets (operating ROA) has shown some fluctuation over the past five years. In 2023, the operating ROA increased to 6.38% from 5.34% in 2022, indicating an improvement in the company's efficiency in generating operating profit from its assets. This uptrend follows a slight decline in 2022 from the higher level of 6.43% in 2021. The significant increase in 2021 compared to 2020, where the operating ROA was 2.84%, reflects a substantial enhancement in the company's operational performance and asset utilization capabilities.
Although the operating ROA in 2023 is higher than in 2019, the company experienced a peak in 2019 with an operating ROA of 4.68%. Overall, the trend in Gates Industrial Corporation plc's operating ROA indicates varying degrees of efficiency in generating operating income relative to its total assets over the past five years. Further analysis of the underlying reasons for these fluctuations would provide valuable insights into the company's operational and financial performance.
Peer comparison
Dec 31, 2023