Gates Industrial Corporation plc (GTES)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,786,300 | 7,121,500 | 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 |
| 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 |
| Financial leverage ratio | 2.24 | 2.29 | 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 |
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 on a declining trend over the reporting periods, indicating a reduction in the company's reliance on debt financing relative to its equity. The ratio has decreased from 2.89 as of March 31, 2020, to 2.24 as of December 31, 2024. This implies that the company's financial risk has been gradually diminishing, as it has been able to lower its debt levels in comparison to its equity. Generally, a lower financial leverage ratio suggests a stronger financial position and better ability to cover its financial obligations. Despite some fluctuations, the overall trend showcases an improvement in the company's capital structure and financial stability over the years.
Peer comparison
Dec 31, 2024