Gates Industrial Corporation plc (GTES)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 39.86% | 39.54% | 39.28% | 38.58% | 38.06% | 36.98% | 36.16% | 35.71% | 35.19% | 35.29% | 36.17% | 37.25% | 38.54% | 39.23% | 38.99% | 37.93% | 37.05% | 36.49% | 36.00% | 36.46% |
| Operating profit margin | 14.05% | 14.13% | 14.32% | 13.92% | 12.96% | 12.26% | 11.69% | 11.32% | 10.80% | 10.38% | 11.14% | 12.16% | 13.93% | 14.29% | 12.93% | 9.49% | 7.56% | 7.11% | 7.48% | 10.19% |
| Pretax margin | 8.87% | 8.26% | 8.68% | 8.32% | 7.32% | 7.62% | 7.19% | 6.99% | 6.63% | 5.49% | 6.18% | 7.40% | 9.08% | 9.23% | 7.78% | 4.28% | 2.15% | 1.65% | 2.13% | 4.67% |
| Net profit margin | 5.72% | 6.43% | 7.24% | 6.97% | 6.52% | 7.08% | 6.36% | 6.08% | 6.21% | 5.71% | 6.24% | 7.48% | 8.55% | 7.49% | 6.98% | 3.75% | 2.84% | 2.73% | 2.47% | 3.74% |
The profitability ratios of Gates Industrial Corporation plc have shown fluctuating trends over the past few years. The gross profit margin has generally been on an upward trajectory, increasing from 36.46% in March 2020 to a peak of 39.86% in December 2024.
In contrast, the operating profit margin has displayed more volatility, with periods of decline and growth. It started at 10.19% in March 2020, dropped to 7.11% in September 2020, before reaching a peak of 14.32% in June 2024.
Similarly, the pretax margin and net profit margin have experienced fluctuations. The pretax margin has shown an increasing trend, starting at 4.67% in March 2020 and reaching 8.87% in December 2024. The net profit margin, on the other hand, has fluctuated more significantly, with a peak of 8.55% in December 2021 but dropping to 5.72% by December 2024.
Overall, while the company has demonstrated improvements in gross profit margin and operating profit margin over the period, the variability in pretax margin and net profit margin suggests potential challenges in maintaining consistent profitability levels. Monitoring and managing cost structures and operational efficiency will be crucial for sustaining profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.87% | 3.11% | 3.59% | 3.50% | 3.21% | 3.59% | 3.13% | 2.97% | 3.07% | 2.82% | 3.01% | 3.52% | 3.94% | 3.45% | 3.07% | 1.51% | 1.07% | 1.02% | 0.95% | 1.56% |
| Return on total capital | 8.88% | 8.53% | 8.59% | 8.27% | 7.53% | 7.98% | 7.46% | 7.03% | 6.78% | 5.97% | 6.31% | 7.00% | 7.98% | 8.36% | 7.36% | 5.09% | 3.92% | 3.57% | 3.89% | 5.50% |
| Return on equity (ROE) | 6.45% | 7.11% | 7.94% | 7.75% | 7.23% | 8.25% | 7.43% | 6.73% | 7.10% | 6.76% | 7.33% | 8.70% | 9.58% | 8.57% | 7.72% | 3.90% | 2.83% | 2.87% | 2.73% | 4.51% |
Gates Industrial Corporation plc's profitability ratios have shown a mixed trend over the period under review.
- Operating return on assets (Operating ROA) has gradually increased from 4.25% as of March 31, 2020, to 7.05% by December 31, 2024, indicating the company's ability to generate profits from its operating activities relative to its total assets.
- Return on assets (ROA) has fluctuated throughout the period, starting at 1.56% on March 31, 2020, reaching a peak of 3.94% on December 31, 2021, before declining slightly to 2.87% by December 31, 2024. This ratio reflects the company's overall efficiency in using its assets to generate earnings.
- Return on total capital has shown a more consistent upward trend, increasing from 5.50% on March 31, 2020, to 8.88% by December 31, 2024. This metric demonstrates how effectively the company is utilizing its total invested capital to generate profits.
- Return on equity (ROE) has also displayed a similar pattern of improvement, rising from 4.51% on March 31, 2020, to 6.45% by December 31, 2024. ROE measures the profitability of the company from the shareholders' perspective.
Overall, Gates Industrial Corporation plc has shown a positive trend in its profitability ratios, with improvements in operating efficiency, asset utilization, capital efficiency, and returns to shareholders over the period analyzed.