Gartner Inc (IT)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.69 | 4.55 | 3.79 | 3.74 | 5.24 | 4.63 | 3.78 | 3.51 | 4.98 | 4.29 | 3.64 | 3.43 | 4.64 | 3.89 | 3.48 | 3.22 | 4.29 | 3.94 | 3.68 | 3.15 | |
| DSO | days | 98.92 | 80.26 | 96.35 | 97.50 | 69.67 | 78.84 | 96.63 | 103.86 | 73.35 | 85.00 | 100.35 | 106.47 | 78.64 | 93.76 | 104.76 | 113.43 | 85.14 | 92.71 | 99.08 | 116.04 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.69
= 98.92
Days of Sales Outstanding (DSO) is a key financial ratio that measures the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it indicates strong cash flow management.
Analyzing the DSO trend of Gartner Inc over the period from December 31, 2019, to December 31, 2024, we observe fluctuations in the metric. The DSO for Gartner Inc started at 116.04 days on December 31, 2019, and decreased to 69.67 days by September 30, 2023. This indicates improvements in Gartner's accounts receivable collection efficiency during this period.
However, the DSO increased to 98.92 days as of December 31, 2024, which suggests a slight deterioration in the company's accounts receivable collection efficiency compared to the lowest point in September 30, 2023. It is essential for Gartner Inc to closely monitor and manage its accounts receivable collection process to ensure that the DSO does not increase significantly, as higher DSO can tie up working capital and impact the company's liquidity.
Overall, the trend in Gartner Inc's DSO demonstrates both positive and negative movements over the period analyzed. It is important for the company to maintain an optimal balance between efficient accounts receivable collection and customer relationships to support its financial health and profitability.