Gates Industrial Corporation plc (GTES)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,311,500 | 2,415,000 | 2,426,400 | 2,526,500 | 2,666,000 |
| Total stockholders’ equity | US$ in thousands | 3,023,600 | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 |
| Debt-to-equity ratio | 0.76 | 0.75 | 0.78 | 0.82 | 0.95 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,311,500K ÷ $3,023,600K
= 0.76
The debt-to-equity ratio of Gates Industrial Corporation plc has displayed a declining trend over the past five years, from 0.95 in December 2020 to 0.76 in December 2024. This indicates a positive sign as the company's reliance on debt relative to equity has been decreasing steadily. A decreasing debt-to-equity ratio generally suggests that the company is becoming less leveraged and may have a stronger financial position. It shows that the company is relying less on debt financing and more on equity financing, which could lead to reduced financial risk and improved solvency. Overall, the decreasing trend in the debt-to-equity ratio for Gates Industrial Corporation plc is a favorable indicator of its financial health and stability over the years.
Peer comparison
Dec 31, 2024