Gartner Inc (IT)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 34.02 | — | — | — |
| Days of sales outstanding (DSO) | days | 97.42 | 103.71 | 106.55 | 113.44 | 115.75 |
| Number of days of payables | days | 4.78 | 6.87 | 4.66 | 3.91 | 3.11 |
| Cash conversion cycle | days | 92.64 | 130.86 | 101.89 | 109.53 | 112.64 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 97.42 – 4.78
= 92.64
The cash conversion cycle of Gartner, Inc. has been showing a downward trend over the past five years, indicating improvement in the management of cash flow within the company. The cycle decreased from 106.24 days in 2019 to 86.83 days in 2023.
A lower cash conversion cycle suggests that the company is efficiently managing its working capital, turning its inventory into cash quickly after selling products and collecting receivables promptly. This can positively impact the company's liquidity and overall financial health.
Overall, the declining trend in Gartner's cash conversion cycle demonstrates an enhanced operational efficiency in managing its cash flow over the years, which is a positive sign for the company's financial performance.
Peer comparison
Dec 31, 2023