Gates Industrial Corporation plc (GTES)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 474,000 | 465,100 | 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 |
| Long-term debt | US$ in thousands | 2,311,500 | 2,341,500 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,023,600 | 3,110,300 | 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 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $474,000K ÷ ($2,311,500K + $3,023,600K)
= 8.88%
Gates Industrial Corporation plc's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio has ranged from a low of 3.57% in September 2020 to a peak of 8.88% by the end of December 2024. The trend indicates some volatility in the company's ability to generate returns in relation to its total capital employed. Overall, the return on total capital has generally improved over the years, showing a positive trajectory towards the end of the period under consideration. This may suggest better utilization of the company's capital resources and potentially improved operational efficiency.
Peer comparison
Dec 31, 2024