Gates Industrial Corporation plc (GTES)
Debt-to-equity 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-equity ratio | 0.76 | 0.75 | 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 |
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 shown a decreasing trend over the past few years, indicating a reduction in the company's reliance on debt financing compared to equity. As of December 31, 2024, the ratio stands at 0.76, which means that for every $1 of equity, the company has $0.76 of debt. This suggests a relatively healthy financial position with a lower level of financial risk.
The decreasing trend in the debt-to-equity ratio from 1.17 in March 2020 to 0.76 in December 2024 could indicate that the company has been successful in managing its debt levels, potentially through debt repayments or efficient capital management. A lower ratio generally indicates a lower financial risk and a better capacity to meet financial obligations.
It is important to note that the debt-to-equity ratio should be analyzed in conjunction with other financial ratios and factors to gain a comprehensive understanding of the company's overall financial health and performance.
Peer comparison
Dec 31, 2024