Gartner Inc (IT)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 0.91 | 0.77 | 0.78 | 0.79 | 0.71 |
| Quick ratio | 0.77 | 0.63 | 0.63 | 0.66 | 0.56 |
| Cash ratio | 0.35 | 0.20 | 0.22 | 0.24 | 0.10 |
Gartner, Inc.'s liquidity ratios indicate its ability to meet short-term obligations and provide a snapshot of its financial health over the past five years.
The current ratio measures the company's ability to cover short-term liabilities with current assets. Gartner's current ratio has ranged from 0.71 to 0.91 over the past five years, with a slight improvement in 2023 compared to the previous years. While the ratios are below 1, suggesting that the company may have difficulty meeting its short-term obligations, the higher ratios in recent years indicate a stronger liquidity position.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Gartner's quick ratio has followed a similar trend to the current ratio, indicating the company's ability to cover short-term liabilities without relying on inventory sales.
The cash ratio measures the company's ability to cover immediate liabilities with cash and cash equivalents. Gartner's cash ratio has shown an increasing trend over the past five years, reaching 0.48 in 2023. This indicates an improvement in the company's ability to meet its most immediate obligations with readily available cash.
Overall, Gartner's liquidity ratios have shown improvement over the past five years, with the company demonstrating an enhanced ability to meet short-term obligations and manage liquidity effectively. It is essential for investors and stakeholders to continue monitoring these ratios to ensure the company's financial stability and liquidity position.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 92.64 | 130.86 | 101.89 | 109.53 | 112.64 |
The cash conversion cycle for Gartner, Inc. has shown a gradual improvement over the past five years. The cycle decreased from 106.24 days in 2019 to 86.83 days in 2023. This indicates that the company has been managing its cash flow more efficiently, reducing the time it takes to convert its investments in inventory and other resources into cash receipts from sales. A shorter cash conversion cycle suggests that Gartner, Inc. is able to generate cash quickly from its operations, which is a positive sign of liquidity and operational efficiency. This trend indicates that the company has been effective in managing its working capital and optimizing its cash flow cycle in recent years.