Gates Industrial Corporation plc (GTES)
Debt-to-equity 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-equity ratio | 0.73 | 0.73 | 0.75 | 0.78 | 0.82 | 0.75 | 0.78 | 0.84 | 0.86 | 0.86 | 0.82 | 0.84 | 0.86 | 0.92 | 0.95 | 1.13 | 1.16 | 1.17 | 1.10 | 1.13 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,310,300K ÷ $3,177,000K
= 0.73
The debt-to-equity ratio of Gates Industrial Corporation plc has shown a fluctuating trend over the past several quarters. The ratio indicates the proportion of the company's debt relative to its equity. A lower ratio typically signifies lower financial risk as it suggests that the company relies less on debt financing and has a stronger equity base.
Looking at the data, the debt-to-equity ratio stood at 0.73 as of June 30, 2024, and remained stable for the preceding quarter. This indicates that the company's debt levels were relatively moderate compared to its equity during this period. However, the ratio has shown some volatility in recent quarters, reaching a high of 1.17 as of December 31, 2019.
The upward trend in the ratio from 2019 to mid-2020 suggests an increase in the company's reliance on debt financing during that period. Subsequently, there was a gradual decline in the ratio until mid-2023, indicating a reduction in debt levels or an increase in equity. However, there was a slight uptick in the ratio towards the end of 2023.
Overall, the trend in Gates Industrial Corporation plc's debt-to-equity ratio highlights the company's changing capital structure and its use of debt to finance operations. It is essential for stakeholders to monitor this ratio closely to assess the company's financial leverage and risk profile.
Peer comparison
Jun 30, 2024