Asset Breakdown
5.8 B
Assets Non Current
3.7 B
Goodwill
2 B
Current Assets
| Total Assets | 7.79 Billion | |
| Current Assets | 1.99 Billion | |
| Assets Non Current | 5.81 Billion | |
| Goodwill | 3.65 Billion | |
| Tax Assets | 48.39 Million |
Continue to hold Gates (NYSE:GTES) based on its current debt obligations?
 | By Vlad Skutelnik | Macroaxis Story |
Gates Industrial is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 8th of February 2021. Gates Industrial Earnings per Diluted Share are relatively stable at the moment as compared to the past year. Gates Industrial reported last year Earnings per Diluted Share of 0.26. As of 02/07/2021, Profit Margin is likely to grow to 0.0248, while Invested Capital is likely to drop slightly above 4.5 B. While some millenniums are indifferent towards industrials space, it makes sense to sum up Gates Industrial as a unique investment alternative.
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Reviewed by Gabriel Shpitalnik
This firm currently holds 3.16 B in liabilities with Debt to Equity (D/E) ratio of 1.07, which is about average as compared to similar companies. The company has a current ratio of 3.07, suggesting that it is liquid enough and is able to pay its financial obligations when due. About 101.0% of the company shares are owned by institutional investors. Gates Industrial has price-to-book (P/B) ratio of 1.63. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity had not issued any dividends in recent years. Gates Industrial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Gates Industrial, including all of Gates Industrial's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Gates Industrial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Gates Industrial debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Gates Total Liabilities
Gates Industrial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Gates Industrial has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Gates Industrial balance sheet include debt obligations and money owed to different Gates Industrial vendors, workers, and loan providers. Below is the chart of Gates short long-term liabilities accounts currently reported on its balance sheet. You can use Gates Industrial financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Gates Industrial's Liquidity
Gates Industrial financial leverage refers to using borrowed capital as a funding source to finance Gates Industrial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gates Industrial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Gates Industrial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Gates Industrial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Gates Industrial's total debt and its cash.
What is driving Gates Industrial Investor Appetite?
Gates Industrial reported the previous year's revenue of 2.72 B. Net Income was 74.8 M with profit before overhead, payroll, taxes, and interest of 1.15 B.
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