Gates Industrial Corporation plc (GTES)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 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 | 2,651,000 | 2,577,400 |
| Debt-to-capital ratio | 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 | 0.52 | 0.53 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,310,300K ÷ ($2,310,300K + $3,177,000K)
= 0.42
The debt-to-capital ratio of Gates Industrial Corporation plc, over the past several quarters, has shown a slightly increasing trend, starting at 0.42 in December 2019 and reaching 0.54 by March 2020 before stabilizing around the 0.45 to 0.46 range. This ratio indicates that on average, around 45-46% of the company's capital structure is financed through debt.
A debt-to-capital ratio of 0.45-0.46 suggests that Gates Industrial Corporation plc relies more on debt financing relative to equity financing. It is crucial for investors and analysts to monitor changes in this ratio as it could indicate shifts in the company's financial risk and leverage levels. The relatively consistent level of the ratio over the recent quarters indicates a stable debt structure for the company, but it would be important to assess this ratio in conjunction with other financial metrics for a comprehensive evaluation of the company's financial health.
Peer comparison
Jun 30, 2024