Gartner Inc (IT)

Short-term

Turnover ratios

The activity ratios for Gartner, Inc. provide insights into how efficiently the company is managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: Unfortunately, the information for inventory turnover is not available in the data provided. This ratio typically measures the number of times a company sells and replaces its inventory during a specific period. A higher inventory turnover ratio indicates more efficient management of inventory.

2. Receivables Turnover: The receivables turnover ratio has been improving over the years, from 3.20 in 2019 to 3.69 in 2023. This suggests that Gartner, Inc. is converting its accounts receivable into cash more frequently. A higher receivables turnover ratio indicates better credit management and collection practices.

3. Payables Turnover: The payables turnover ratio has been fluctuating over the years, with a significant decrease in 2022 followed by an increase in 2023. The ratio rose from 46.99 in 2019 to 30.14 in 2023. A higher payables turnover ratio suggests that the company is taking longer to pay off its suppliers, which can be a sign of strong bargaining power or extended credit terms.

4. Working Capital Turnover: Unfortunately, the information for working capital turnover is not available in the data provided. This ratio typically measures how effectively a company is using its working capital to generate sales. A higher working capital turnover ratio indicates that the company is efficiently utilizing its resources.

In conclusion, while the data reveals positive trends in receivables turnover and payables turnover, more information on inventory turnover and working capital turnover would provide a comprehensive view of Gartner, Inc.'s overall efficiency in managing its working capital and operational activities.

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Average number of days

Based on the activity ratios provided for Gartner, Inc., we can analyze the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): Unfortunately, data for Days of Inventory on Hand is not available for the years provided. This ratio typically indicates how many days it takes for a company to sell its inventory. A lower DOH ratio is favorable as it suggests faster turnover of inventory.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding for Gartner, Inc. have shown a declining trend over the past five years. This indicates that the company is collecting its accounts receivable more quickly. A lower DSO is generally preferred as it signifies a faster collection of sales revenue.

3. Number of Days of Payables: The Number of Days of Payables for Gartner, Inc. has seen fluctuations but has generally increased over the past five years. A higher number of days of payables suggests that the company is taking longer to pay its suppliers. This could indicate better cash flow management or potentially strained supplier relationships.

Overall, Gartner, Inc. has shown improvement in managing its accounts receivable, as evidenced by the decreasing trend in DSO. However, the increasing trend in the number of days of payables may require further analysis to understand its impact on the company's working capital and cash flow position.

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Long-term

The long-term activity ratios of Gartner, Inc. can provide insights into how efficiently the company is utilizing its fixed assets and total assets to generate sales revenue over the years.

1. Fixed Asset Turnover:
- Gartner's fixed asset turnover has shown an increasing trend from 2019 to 2023, indicating that the company has been more effective in utilizing its fixed assets to generate sales revenue.
- The significant increase in the fixed asset turnover ratio from 2019 (12.32) to 2023 (22.48) suggests that Gartner has been able to generate more sales relative to its investment in fixed assets over this period.

2. Total Asset Turnover:
- The total asset turnover ratio has remained relatively stable over the years, indicating that Gartner has been consistently efficient in generating sales revenue relative to its total assets.
- Despite fluctuations, the total asset turnover ratio has consistently been above 0.5, suggesting that Gartner has been effectively utilizing its total assets to generate revenue.

Overall, the increasing trend in the fixed asset turnover ratio and the consistent performance of the total asset turnover ratio suggest that Gartner, Inc. has been efficiently managing its assets to drive sales growth and generate revenue over the years.