Gates Industrial Corporation plc (GTES)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 232,900 | 220,800 | 297,100 | 79,400 | 690,100 |
| Total stockholders’ equity | US$ in thousands | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 | 2,651,000 |
| ROE | 7.23% | 7.10% | 9.58% | 2.83% | 26.03% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $232,900K ÷ $3,220,200K
= 7.23%
Gates Industrial Corporation plc's return on equity (ROE) has fluctuated over the past five years, ranging from a high of 26.03% in 2019 to a low of 2.83% in 2020. The ROE for 2021 was 9.58%, showing an improvement from the previous year. However, in 2022 and 2023, the ROE remained relatively stable at around 7%, indicating a lack of significant growth in profitability as measured by ROE.
The ROE is a key indicator of a company's profitability and efficiency in utilizing shareholders' equity to generate returns. A higher ROE signifies better performance in this aspect. Gates Industrial Corporation plc's ROE performance over the years suggests varying levels of effectiveness in generating profits from the shareholders' equity invested in the company, with notable fluctuations in performance.
It is important for Gates Industrial Corporation plc to analyze the factors contributing to these fluctuations in ROE and implement strategies to improve profitability and efficiency in order to enhance shareholder value.
Peer comparison
Dec 31, 2023