Gartner Inc (IT)

Short-term

Turnover ratios

Inventory Turnover:
- Gartner Inc's inventory turnover ratio was not available for the years 2020, 2023, and 2024.
- In 2022, the company had an inventory turnover ratio of 10.73, indicating that the company sold and replaced its inventory approximately 10.73 times during the year.

Receivables Turnover:
- Gartner Inc's receivables turnover ratio has been relatively stable over the years, with values of 3.22 in 2020, 3.43 in 2021, 3.52 in 2022, 3.75 in 2023, and 3.72 in 2024.
- This indicates that the company collected its accounts receivable approximately 3.52 times during 2022, showing efficient management in turning credit sales into cash.

Payables Turnover:
- Gartner Inc's payables turnover ratio shows fluctuation over the years, with values of 93.42 in 2020, 78.40 in 2021, 53.12 in 2022, 76.32 in 2023, and 119.59 in 2024.
- A higher payables turnover ratio generally indicates that the company is taking longer to pay its suppliers, which may have implications for its relationships with vendors.

Working Capital Turnover:
- The working capital turnover ratio for Gartner Inc was not available for the years 2020, 2021, 2022, and 2023.
- In 2024, the company had a working capital turnover ratio of 27.75, showing how efficiently the company utilized its working capital to generate revenue during that year.

In conclusion, Gartner Inc demonstrated variability in activity ratios over the years, with notable efficiency in managing its receivables and working capital turnover, while its inventory turnover and payables turnover displayed fluctuations that may warrant further investigation into the company's operational activities and liquidity management.

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Average number of days

Based on the provided data for Gartner Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2022, Gartner Inc had an inventory turnover of approximately 34.02 days. This indicates that the company takes around 34 days to sell its inventory.
- There is no data available for the DOH for the other years.

2. Days of Sales Outstanding (DSO):
- In December 2020, Gartner Inc had a DSO of 113.44 days, which reduced to 106.55 days by December 2021 and further decreased to 103.71 days by December 2022. This trend suggests a favorable improvement in the collection of accounts receivable over the years.
- By December 2024, the DSO increased slightly to 98.07 days, which could indicate a slight delay in collecting receivables compared to the previous year.

3. Number of Days of Payables:
- The number of days of payables for Gartner Inc increased from 3.91 days in 2020 to 6.87 days in 2022, indicating that the company took longer to pay its suppliers.
- However, by December 2024, the days of payables reduced significantly to 3.05 days, indicating a potential improvement in the company's payment cycle efficiency compared to 2022.

Overall, Gartner Inc's activity ratios show varying trends in inventory turnover, accounts receivable collection, and accounts payable management over the years. Monitoring and managing these ratios effectively can help the company optimize its working capital and enhance operational efficiency.

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Long-term

Long-term activity ratios, such as Fixed Asset Turnover and Total Asset Turnover, provide insights into how efficiently a company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures how efficiently a company is using its fixed assets to generate sales. Gartner Inc's Fixed Asset Turnover has been showing an increasing trend over the years, from 11.86 in 2020 to 25.98 in 2024. This indicates that the company is managing its fixed assets more effectively to generate sales, which is a positive sign.

2. Total Asset Turnover: Total Asset Turnover indicates how well a company is utilizing all its assets to generate revenue. Gartner Inc's Total Asset Turnover has shown some fluctuations over the years, from 0.55 in 2020 to 0.74 in 2024. Although there was a slight decrease in 2024 compared to the previous year, the ratio generally indicates an increasing efficiency in utilizing its total assets to generate sales.

Overall, the increasing trend in Fixed Asset Turnover and the generally improving trend in Total Asset Turnover suggest that Gartner Inc is effectively using its assets to drive revenue growth and operate more efficiently over the long term.