Gartner Inc (IT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | 10.62 | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Payables turnover | 119.22 | — | — | 75.40 | — | — | — | 52.57 | — | — | — | 55.02 | — | — | — | 92.24 | — | — | — | 115.94 |
| Working capital turnover | 27.51 | 74.63 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, the activity ratios for Gartner Inc for the years 2019 to 2024 can be analyzed as follows:
1. Inventory Turnover:
- The inventory turnover ratio is not available for most of the periods but was 10.62 as of December 31, 2022. This indicates that the company was able to sell and replace its inventory 10.62 times during that period.
2. Receivables Turnover:
- The receivables turnover ratio ranged from 3.15 to 5.24 during the period analyzed. A higher turnover ratio suggests that the company is efficient in collecting its accounts receivable. The ratio improved over time, indicating better management of receivables.
3. Payables Turnover:
- The payables turnover ratio ranged from 52.57 to 119.22 during the period. A higher turnover ratio indicates that the company is taking fewer days to pay its suppliers, which can sometimes be a positive indicator. The ratio fluctuated over the years, suggesting varying payment terms with suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio was only available for September 30, 2024, showing a value of 74.63. A higher working capital turnover implies efficient utilization of working capital to generate sales. The increase in this ratio indicates improved efficiency in generating sales relative to working capital.
Overall, analyzing these activity ratios provides insights into Gartner Inc's efficiency in managing its inventory, accounts receivable, accounts payable, and working capital to drive operational performance and financial results.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | 34.38 | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (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 |
| Number of days of payables | days | 3.06 | — | — | 4.84 | — | — | — | 6.94 | — | — | — | 6.63 | — | — | — | 3.96 | — | — | — | 3.15 |
Based on the provided data, we can analyze Gartner Inc's activity ratios as follows:
1. Days of Inventory on Hand (DOH): Gartner Inc had a DOH of 34.38 days as of December 31, 2022. This indicates that, on average, the company held inventory for approximately 34 days before selling it. A lower DOH is generally preferable as it implies faster turnover of inventory and reduced risk of obsolescence.
2. Days of Sales Outstanding (DSO): The DSO for Gartner Inc ranged from 69.67 days as of September 30, 2023, to 116.04 days as of December 31, 2019. DSO reflects the average number of days it takes for the company to collect revenue after a sale. A lower DSO is favorable as it signifies quicker cash conversion and efficient receivables management.
3. Number of Days of Payables: Gartner Inc had a range of days of payables from 3.06 days as of December 31, 2024, to 6.94 days as of December 31, 2022. This metric indicates the average number of days it takes for the company to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its payables, potentially improving its cash conversion cycle.
Overall, analyzing these activity ratios provides insights into Gartner Inc's efficiency in managing its inventory, accounts receivable, and accounts payable. It highlights the company's ability to efficiently convert its assets into revenue and manage its working capital effectively.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 25.76 | 23.37 | 23.12 | 22.82 | 22.99 | 22.77 | 22.40 | 20.68 | 20.34 | 20.11 | 18.67 | 17.11 | 15.16 | 13.88 | 12.69 | 11.86 | 12.22 | 12.02 | 12.21 | 12.10 |
| Total asset turnover | 0.73 | 0.76 | 0.77 | 0.76 | 0.82 | 0.80 | 0.78 | 0.75 | 0.80 | 0.76 | 0.69 | 0.63 | 0.64 | 0.60 | 0.59 | 0.55 | 0.59 | 0.61 | 0.62 | 0.58 |
Gartner Inc's fixed asset turnover ratio has shown a consistent upward trend from 12.10 in December 2019 to 25.76 in December 2024. This indicates that the company is generating more revenue per dollar of fixed assets invested over the years, reflecting improved operational efficiency and effective utilization of its fixed assets.
On the other hand, the total asset turnover ratio has fluctuated over the same period, starting at 0.58 in December 2019, peaking at 0.82 in September 2023, and then declining to 0.73 in December 2024. This suggests that while the company was able to generate more revenue per dollar of total assets in the mid-term, there has been a slight decline towards the end of the period.
Overall, the increasing trend in fixed asset turnover signifies Gartner Inc's ability to efficiently manage its fixed assets to generate sales, while the fluctuation in total asset turnover may indicate changes in the composition of the company's assets or variations in its revenue generation strategies over the years. It is important for the company to closely monitor both ratios to ensure optimal asset utilization and sustainable growth in the long term.