Gates Industrial Corporation plc (GTES)

Solvency ratios

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
Debt-to-assets ratio 0.33 0.33 0.33 0.34 0.35 0.33 0.34 0.35 0.35 0.35 0.34 0.34 0.34 0.36 0.36 0.40 0.41 0.40 0.39 0.40
Debt-to-capital ratio 0.42 0.42 0.43 0.44 0.45 0.43 0.44 0.46 0.46 0.46 0.45 0.46 0.46 0.48 0.49 0.53 0.54 0.54 0.52 0.53
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
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

Gates Industrial Corporation plc's solvency ratios have shown some fluctuations over the past several quarters. The debt-to-assets ratio has remained fairly stable around the 0.33 to 0.36 range, indicating that a significant portion of the company's assets are financed by debt.

The debt-to-capital and debt-to-equity ratios have exhibited a more consistent upward trend over time, signaling an increasing reliance on debt in the company's capital structure. This trend is particularly evident in the debt-to-equity ratio, which has risen from 0.73 to 1.13 over the period under review.

The financial leverage ratio, which provides an overall measure of the company's financial risk, has also been on the rise, reaching a high of 2.87 in the most recent quarter. This indicates that Gates Industrial Corporation plc has been increasing its use of debt to fund its operations and investments, potentially leading to higher financial risk and leverage.

Overall, the solvency ratios suggest that Gates Industrial Corporation plc has been gradually taking on more debt relative to its assets, capital, and equity, which could raise concerns about the company's long-term financial sustainability and risk profile. Investors and stakeholders may want to closely monitor these ratios to assess the company's ability to manage its debt levels effectively.

Coverage ratios

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
Interest coverage 3.19 2.84 2.60 2.66 2.62 2.68 2.69 2.45 2.64 2.96 3.36 3.19 2.70 1.83 1.39 1.29 1.39 1.89 2.23 2.66

The interest coverage ratio for Gates Industrial Corporation plc has shown fluctuating trends over the past few quarters. The ratio has ranged from a low of 1.29 to a high of 3.36 during the period from September 2019 to June 2024. Generally, a higher interest coverage ratio indicates that the company is better positioned to meet its interest obligations.

In the recent quarters, the interest coverage ratio has been around 2.60 to 3.19, which signifies that the company's operating income is sufficient to cover its interest expenses. However, it is important to note that the ratio dipped below 2 in some quarters, indicating a potential risk in meeting interest payments from operating income alone.

Overall, while the interest coverage ratio for Gates Industrial Corporation plc has shown some variability, it is crucial for investors and creditors to monitor this ratio closely to assess the company's ability to service its debt obligations.