Gates Industrial Corporation plc (GTES)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.42 | 0.42 | 0.43 | 0.44 | 0.45 | 0.43 | 0.44 | 0.46 | 0.46 | 0.46 | 0.45 | 0.46 | 0.46 | 0.48 | 0.49 | 0.53 | 0.54 | 0.54 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,311,500K ÷ ($2,311,500K + $3,023,600K)
= 0.43
The debt-to-capital ratio of Gates Industrial Corporation plc has shown a decreasing trend from 0.54 as of March 31, 2020, to 0.43 as of December 31, 2024. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the rest being financed by equity. A lower debt-to-capital ratio generally suggests a lower level of financial risk, as it implies a lower reliance on debt financing. The decreasing trend in the ratio over the period indicates a reduction in the company's debt relative to its total capital, which could signal improved financial health and a stronger balance sheet. However, it is essential to consider the company's overall financial strategy and market conditions when evaluating the significance of this trend.
Peer comparison
Dec 31, 2024