Gates Industrial Corporation plc (GTES)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 7,034,800 | 7,045,900 | 7,254,500 | 7,109,300 | 7,276,900 | 7,282,400 | 7,191,600 | 7,038,700 | 7,198,000 | 7,399,100 | 7,533,000 | 7,506,000 | 7,498,900 | 7,376,400 | 7,426,300 | 7,335,700 | 7,176,300 | 7,184,800 | 7,411,300 | 7,285,900 |
| Debt-to-assets ratio | 0.33 | 0.33 | 0.33 | 0.34 | 0.35 | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | 0.34 | 0.34 | 0.34 | 0.36 | 0.36 | 0.40 | 0.41 | 0.40 | 0.39 | 0.40 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,310,300K ÷ $7,034,800K
= 0.33
The debt-to-assets ratio of Gates Industrial Corporation plc has been relatively stable over the past few quarters, averaging around 0.34 to 0.36. This indicates that, on average, the company finances approximately 34% to 36% of its total assets through debt.
A debt-to-assets ratio of 0.33 to 0.35 is generally considered moderate and suggests that the company has a reasonable level of debt in relation to its assets. A higher ratio would indicate a higher level of financial risk as the company would be more heavily leveraged.
It is noteworthy that the ratio fluctuated slightly over the period, reaching a peak of 0.41 in the second quarter of 2020 before gradually declining to around 0.33 to 0.36 in the most recent quarters. This could signify changes in the company's capital structure or its ability to manage debt levels effectively.
Overall, based on the trend and the current range of the debt-to-assets ratio, Gates Industrial Corporation plc appears to have a balanced mix of debt and equity in its capital structure, which could be seen as a positive sign for investors and creditors alike.
Peer comparison
Jun 30, 2024