Gartner Inc (IT)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,819,050 | 4,421,060 | 3,863,280 | 3,604,870 | 3,866,370 |
| Payables | US$ in thousands | 63,139 | 83,225 | 49,277 | 38,588 | 32,995 |
| Payables turnover | 76.32 | 53.12 | 78.40 | 93.42 | 117.18 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,819,050K ÷ $63,139K
= 76.32
The payables turnover ratio measures how efficiently a company manages its payments to suppliers. A higher ratio generally indicates that the company is paying its suppliers more quickly.
Analyzing Gartner, Inc.'s payables turnover ratio over the past five years, we can observe fluctuations. The ratio was 30.14 in 2023, 20.35 in 2022, 29.31 in 2021, 34.86 in 2020, and 46.99 in 2019.
The significant increase in payables turnover from 2022 to 2023 suggests that Gartner, Inc. improved its efficiency in paying suppliers within the year. However, the ratio in 2023 is lower compared to the highest ratio of 46.99 in 2019, indicating a potential slowdown in managing payables in 2023.
Further analysis, including industry benchmarks and trends, would provide more context on whether Gartner, Inc.'s payables turnover ratio is favorable or needs improvement.
Peer comparison
Dec 31, 2023