Gartner Inc (IT)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,651,730 | 4,830,740 | 4,811,990 | 4,760,460 | 4,659,480 | 4,580,360 | 4,455,670 | 4,375,280 | 3,258,030 | 3,100,709 | 2,900,361 | 2,711,157 | 3,578,042 | 3,561,626 | 3,544,765 | 3,559,392 | 3,686,357 | 3,712,763 | 3,799,311 | 3,825,571 |
| Payables | US$ in thousands | 55,793 | — | — | 63,139 | — | — | — | 83,225 | — | — | — | 49,277 | — | — | — | 38,588 | — | — | — | 32,995 |
| Payables turnover | 119.22 | — | — | 75.40 | — | — | — | 52.57 | — | — | — | 55.02 | — | — | — | 92.24 | — | — | — | 115.94 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,651,730K ÷ $55,793K
= 119.22
The payables turnover ratio for Gartner Inc indicates the company's efficiency in managing its accounts payable. A higher turnover ratio generally suggests that the company is paying off its suppliers more quickly.
Based on the provided data:
- The payables turnover was 115.94 times as of December 31, 2019, reflecting a high frequency of paying off suppliers within the year.
- There is no data available for the payables turnover for the periods between March 31, 2020, and December 31, 2021.
- The ratio decreased to 55.02 as of December 31, 2021, indicating a slowdown in paying suppliers.
- The ratio further dropped to 52.57 as of December 31, 2022, suggesting a continued reduction in paying off suppliers promptly.
- However, there was an improvement in the payables turnover ratio to 75.40 as of December 31, 2023, showing some recovery in managing accounts payable.
- Subsequently, the ratio increased significantly to 119.22 as of December 31, 2024, which demonstrates a notable improvement in the company's efficiency in settling payables.
It is essential for Gartner Inc to closely monitor and manage its payables turnover ratio to ensure a balance between timely payments to suppliers and maintaining healthy cash flow within the business operations.
Peer comparison
Dec 31, 2024