Gates Industrial Corporation plc (GTES)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 478,700 | 424,400 | 375,100 | 449,000 | 214,400 |
| Long-term debt | US$ in thousands | 2,311,500 | 2,415,000 | 2,426,400 | 2,526,500 | 2,666,000 |
| Total stockholders’ equity | US$ in thousands | 3,023,600 | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 |
| Return on total capital | 8.97% | 7.53% | 6.78% | 7.98% | 3.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $478,700K ÷ ($2,311,500K + $3,023,600K)
= 8.97%
Gates Industrial Corporation plc's return on total capital has shown an upward trend over the past five years. Starting at 3.92% on December 31, 2020, the return increased to 8.97% by December 31, 2024. This improvement indicates the company's ability to generate more profit relative to the total capital employed in its operations. The company's return on total capital peaked in 2024, demonstrating efficiency in capital utilization. Overall, the increasing trend in return on total capital suggests improved financial performance and effective management of resources by Gates Industrial Corporation plc.
Peer comparison
Dec 31, 2024