Gartner Inc (IT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 34.02 | — | — |
| Days of sales outstanding (DSO) | days | 98.07 | 97.42 | 103.71 | 106.55 | 113.44 |
| Number of days of payables | days | 3.05 | 4.78 | 6.87 | 4.66 | 3.91 |
| Cash conversion cycle | days | 95.02 | 92.64 | 130.86 | 101.89 | 109.53 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 98.07 – 3.05
= 95.02
The cash conversion cycle of Gartner Inc has shown fluctuations over the years as follows:
- As of December 31, 2020, the cash conversion cycle was 109.53 days.
- By December 31, 2021, the cycle had decreased to 101.89 days.
- However, there was a significant increase in the cycle by December 31, 2022, reaching 130.86 days.
- Gartner Inc managed to improve its cash conversion cycle by December 31, 2023, decreasing it to 92.64 days.
- Further improvement was seen by December 31, 2024, with the cycle reduced to 95.02 days.
The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle generally indicates that the company is efficiently managing its working capital and liquidity.
Peer comparison
Dec 31, 2024