Gates Industrial Corporation plc (GTES)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 471,100 | 453,900 | 424,400 | 439,500 | 416,900 | 396,300 | 375,100 | 322,300 | 346,300 | 389,700 | 449,000 | 464,500 | 408,100 | 278,800 | 214,400 | 197,500 | 210,400 | 296,100 | 352,000 | 400,500 |
| Long-term debt | US$ in thousands | 2,310,300 | 2,313,100 | 2,415,000 | 2,417,700 | 2,520,600 | 2,423,300 | 2,426,400 | 2,467,100 | 2,533,900 | 2,573,200 | 2,526,500 | 2,542,000 | 2,559,600 | 2,629,800 | 2,666,000 | 2,927,800 | 2,906,900 | 2,901,900 | 2,912,300 | 2,909,800 |
| Total stockholders’ equity | US$ in thousands | 3,177,000 | 3,178,600 | 3,220,200 | 3,091,200 | 3,070,400 | 3,215,000 | 3,110,000 | 2,936,000 | 2,958,200 | 2,995,100 | 3,099,700 | 3,017,000 | 2,983,800 | 2,851,600 | 2,805,700 | 2,598,500 | 2,497,300 | 2,484,800 | 2,651,000 | 2,577,400 |
| Return on total capital | 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% | 6.33% | 7.30% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $471,100K ÷ ($2,310,300K + $3,177,000K)
= 8.59%
The return on total capital for Gates Industrial Corporation plc has shown fluctuations over the past several quarters. The trend indicates that the company's ability to generate returns from its total capital has varied.
From Jun 30, 2019, to Mar 31, 2020, the return on total capital was relatively stable, ranging from 5.50% to 6.33%. However, there was a significant decrease in the return on total capital in the subsequent quarters, with Mar 31, 2021, reflecting a sharp decline to 3.92%.
The return on total capital started to recover from Dec 31, 2021, reaching its peak at 8.59% on Jun 30, 2024. This indicates that the company has been able to improve its efficiency in generating returns from its total capital over the recent quarters.
Overall, the company's return on total capital has shown variability, with periods of both decline and growth. It will be important for stakeholders to continue monitoring this metric to ensure sustained performance in utilizing the company's total capital effectively.
Peer comparison
Jun 30, 2024