Gates Industrial Corporation plc (GTES)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,034,800 | 7,045,900 | 7,254,500 | 7,109,300 | 7,276,900 | 7,282,400 | 7,191,600 | 7,038,700 | 7,198,000 | 7,399,100 | 7,533,000 | 7,506,000 | 7,498,900 | 7,376,400 | 7,426,300 | 7,335,700 | 7,176,300 | 7,184,800 | 7,411,300 | 7,285,900 |
| 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 |
| Financial leverage ratio | 2.21 | 2.22 | 2.25 | 2.30 | 2.37 | 2.27 | 2.31 | 2.40 | 2.43 | 2.47 | 2.43 | 2.49 | 2.51 | 2.59 | 2.65 | 2.82 | 2.87 | 2.89 | 2.80 | 2.83 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,034,800K ÷ $3,177,000K
= 2.21
The financial leverage ratio of Gates Industrial Corporation plc has exhibited a somewhat increasing trend over the past several periods, indicating a higher level of financial leverage relative to its equity. The ratio rose from 2.21 in Jun 2020 to 2.83 in Sep 2019 with some variations along the way, peaking at 2.89 in Mar 2020. Overall, the company's reliance on debt to finance its operations and growth has been on the rise, potentially increasing the financial risk associated with its capital structure. It is important for stakeholders to closely monitor this trend to assess the company's ability to meet its financial obligations and sustain profitability in the long run.
Peer comparison
Jun 30, 2024