Gates Industrial Corporation plc (GTES)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,415,000 | 2,426,400 | 2,526,500 | 2,666,000 | 2,912,300 |
| Total assets | US$ in thousands | 7,254,500 | 7,191,600 | 7,533,000 | 7,426,300 | 7,411,300 |
| Debt-to-assets ratio | 0.33 | 0.34 | 0.34 | 0.36 | 0.39 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,415,000K ÷ $7,254,500K
= 0.33
The debt-to-assets ratio of Gates Industrial Corporation plc has shown a decreasing trend over the past five years, indicating a relative improvement in the company's ability to cover its obligations with its assets. The ratio decreased from 0.39 in 2019 to 0.33 in 2023. This suggests that the company has either reduced its level of debt, increased its asset base, or a combination of both, which is generally a positive sign for investors and creditors.
A lower debt-to-assets ratio signifies that the company is relying less on debt financing to fund its operations and investments, which can reduce the company's financial risk and improve its financial stability. It also implies a stronger financial position and better leverage for future growth opportunities.
Overall, the decreasing trend in the debt-to-assets ratio of Gates Industrial Corporation plc indicates a potential improvement in the company's financial health and risk profile over time.
Peer comparison
Dec 31, 2023