Gates Industrial Corporation plc (GTES)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 | 2,651,000 |
| Debt-to-equity ratio | 0.75 | 0.78 | 0.82 | 0.95 | 1.10 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,415,000K ÷ $3,220,200K
= 0.75
The debt-to-equity ratio of Gates Industrial Corporation plc has exhibited a declining trend over the past five years, indicating a positive development in the company's capital structure. The ratio decreased from 1.10 in 2019 to 0.75 in 2023, suggesting a reduction in financial leverage and a more conservative approach to debt financing. This improvement implies that the company is relying less on debt to finance its operations and is gradually strengthening its equity base. Overall, the decreasing trend in the debt-to-equity ratio reflects a more favorable balance between debt and equity within the company's capital structure, which may positively impact its financial stability and performance in the long run.
Peer comparison
Dec 31, 2023