Gates Industrial Corporation plc (GTES)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 0.33 | 0.34 | 0.34 | 0.36 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.44 | 0.45 | 0.49 |
| Debt-to-equity ratio | 0.76 | 0.75 | 0.78 | 0.82 | 0.95 |
| Financial leverage ratio | 2.24 | 2.25 | 2.31 | 2.43 | 2.65 |
Gates Industrial Corporation plc has shown a consistent improvement in its solvency ratios over the last five years. The Debt-to-assets ratio has decreased from 0.36 in 2020 to 0.34 in 2022 and then further to 0.33 in 2023 before slightly increasing to 0.34 in 2024, indicating that the company's level of debt in relation to its total assets has been decreasing.
Similarly, the Debt-to-capital ratio has exhibited a downward trend from 0.49 in 2020 to 0.43 in 2024, suggesting that Gates Industrial Corporation plc is relying less on debt to finance its operations relative to its total capital structure.
The Debt-to-equity ratio has also shown a decline from 0.95 in 2020 to 0.76 in 2024, demonstrating a reduction in the company's reliance on debt financing in comparison to its equity.
Finally, the Financial leverage ratio has decreased steadily from 2.65 in 2020 to 2.24 in 2024, indicating that Gates Industrial Corporation plc has been reducing its financial leverage over the years, which is a positive sign for the company's overall financial health and stability.
Overall, the improving trend in these solvency ratios reflects positively on Gates Industrial Corporation plc's ability to meet its financial obligations and indicates a stronger financial position over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.07 | 2.60 | 2.69 | 3.36 | 1.39 |
The interest coverage ratio for Gates Industrial Corporation plc shows a steady improvement over the years, increasing from 1.39 in December 2020 to 3.07 in December 2024. This signifies the company's ability to cover its interest expenses with operating income. However, there was some fluctuation in the ratio between 2021 and 2022 before seeing a positive trend again. Overall, the company's interest coverage ratio indicates a healthier financial position, with improved stability and capacity to service its debt obligations.