Gates Industrial Corporation plc (GTES)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 478,700 486,400 499,100 492,000 462,600 441,400 419,300 402,900 384,000 360,800 387,500 423,900 484,100 493,600 427,000 281,300 211,100 193,700 206,500 305,000
Total assets US$ in thousands 6,786,300 7,121,500 7,034,800 7,045,900 7,254,500 7,109,300 7,276,900 7,282,400 7,191,600 7,038,700 7,198,000 7,399,100 7,533,000 7,506,000 7,498,900 7,376,400 7,426,300 7,335,700 7,176,300 7,184,800
Operating ROA 7.05% 6.83% 7.09% 6.98% 6.38% 6.21% 5.76% 5.53% 5.34% 5.13% 5.38% 5.73% 6.43% 6.58% 5.69% 3.81% 2.84% 2.64% 2.88% 4.25%

December 31, 2024 calculation

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

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets used in operations. It is calculated by dividing operating income by average total assets.

Analyzing the Operating ROA trend of Gates Industrial Corporation plc over the given time periods reveals fluctuations in the company's ability to generate profits from its operational assets.

From March 2020 to December 2020, the Operating ROA ranged between 2.64% and 4.25%, showing some variability in performance. However, from March 2021 to June 2024, the Operating ROA showed a more consistent upward trend, increasing from 3.81% to 7.05%.

The improvement in Operating ROA over the latter period suggests that Gates Industrial Corporation plc was able to enhance its operational efficiency and profitability relative to its asset base. This positive trend indicates that the company was better utilizing its assets to generate higher operating income.

Overall, the increasing trend in Operating ROA is a positive sign for Gates Industrial Corporation plc, indicating improved operational performance and efficiency in generating profits from its assets over the analyzed periods.