Gates Industrial Corporation plc (GTES)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,786,300 | 7,254,500 | 7,191,600 | 7,533,000 | 7,426,300 |
| Total stockholders’ equity | US$ in thousands | 3,023,600 | 3,220,200 | 3,110,000 | 3,099,700 | 2,805,700 |
| Financial leverage ratio | 2.24 | 2.25 | 2.31 | 2.43 | 2.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,786,300K ÷ $3,023,600K
= 2.24
The financial leverage ratio of Gates Industrial Corporation plc has been gradually decreasing over the past five years, from 2.65 in December 2020 to 2.24 in December 2024. This trend indicates that the company's reliance on debt to finance its operations has been reducing over time. A lower financial leverage ratio suggests a lower level of financial risk as the company is relying less on debt to support its business activities. This may indicate a more stable financial position and better ability to weather economic downturns or unexpected challenges. Overall, the decreasing trend in the financial leverage ratio of Gates Industrial Corporation plc is a positive signal for the company's financial health.
Peer comparison
Dec 31, 2024