Gartner Inc (IT)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,672,120 | 4,819,050 | 4,421,060 | 3,863,280 | 3,604,870 |
| Payables | US$ in thousands | 55,793 | 63,139 | 83,225 | 49,277 | 38,588 |
| Payables turnover | 119.59 | 76.32 | 53.12 | 78.40 | 93.42 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,672,120K ÷ $55,793K
= 119.59
To analyze Gartner Inc's payables turnover, we will calculate the ratio for each year based on the data provided:
1. December 31, 2020:
Payables turnover = Cost of Goods Sold / Average Accounts Payable
= 93.42
2. December 31, 2021:
Payables turnover = 78.40
3. December 31, 2022:
Payables turnover = 53.12
4. December 31, 2023:
Payables turnover = 76.32
5. December 31, 2024:
Payables turnover = 119.59
A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could signal efficient cash management or possibly strained supplier relationships. Conversely, a lower ratio may suggest that the company is holding onto its payables longer, potentially indicating liquidity issues or favorable credit terms with suppliers.
Based on the trend observed from 2020 to 2024, we see fluctuations in Gartner Inc's payables turnover ratio. The ratio decreased from 93.42 in 2020 to 53.12 in 2022, indicating a potential extension of payment terms or slower payment to suppliers during that period. However, the ratio increased to 119.59 in 2024, showing a significant improvement in payables turnover, possibly due to better working capital management or renegotiated supplier terms.
Overall, the fluctuating trend in Gartner Inc's payables turnover ratio suggests varying approaches to managing payables over the years, which may have implications for the company's liquidity, supplier relationships, and operational efficiency.
Peer comparison
Dec 31, 2024