Gartner Inc (IT)

Based on the provided data, we can analyze Gartner Inc's liquidity ratios over the years:

1. Current Ratio:
- The current ratio indicates the company's ability to meet its short-term obligations with its short-term assets.
- Gartner Inc's current ratio has been fluctuating over the years, ranging from 0.77 to 1.06.
- A current ratio of less than 1 suggests that the company may have difficulty meeting its short-term obligations with its current assets alone.
- Gartner's current ratio improved from 0.77 in 2022 to 1.06 in 2024, indicating a better ability to cover short-term liabilities.

2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, measures the company's ability to meet short-term obligations with its most liquid assets.
- Gartner Inc's quick ratio has also varied over the years, ranging from 0.63 to 0.91.
- A quick ratio of less than 1 indicates that the company may struggle to meet short-term liabilities without relying on inventory sales.
- The quick ratio showed improvement from 0.63 in 2022 to 0.91 in 2024, reflecting a better liquidity position.

3. Cash Ratio:
- The cash ratio measures the absolute liquidity of a company by comparing its cash and cash equivalents to its current liabilities.
- Gartner Inc's cash ratio has increased steadily from 0.20 in 2022 to 0.49 in 2024.
- A higher cash ratio indicates a better ability to cover short-term liabilities with cash on hand.
- The upward trend in Gartner's cash ratio suggests an improved liquidity position and a stronger ability to meet its obligations with cash reserves.

In summary, Gartner Inc showed improvements in its liquidity position over the years, as indicated by the increasing current ratio, quick ratio, and cash ratio. The company seems to have enhanced its ability to cover short-term obligations using its current assets and cash reserves.

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Additional liquidity measure

The cash conversion cycle of Gartner Inc has fluctuated over the period from December 31, 2020 to December 31, 2024. In 2020, the company had a cash conversion cycle of 109.53 days, which decreased to 101.89 days by the end of 2021. However, there was a significant increase to 130.86 days by December 31, 2022. Subsequently, the cash conversion cycle decreased to 92.64 days by the end of 2023 and slightly increased to 95.02 days by December 31, 2024.

Overall, the trend in the cash conversion cycle indicates variations in the efficiency of Gartner Inc's operations in managing its working capital. A lower cash conversion cycle suggests that the company is able to convert its investments in inventory and receivables into cash more quickly, which can be a positive indicator of operational efficiency and liquidity management. Alternatively, a longer cash conversion cycle may signal inefficiencies in the company's working capital management, potentially affecting its liquidity position. Additional analysis would be recommended to understand the factors influencing these fluctuations further.