Gartner Inc (IT)
Cash conversion cycle
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | 34.38 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 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 | 84.55 | 93.16 | 100.23 |
| Number of days of payables | days | 4.84 | — | — | — | 6.94 | — | — | — | 6.63 | — | — | — | 3.96 | — | — | — | 3.15 | — | — | — |
| Cash conversion cycle | days | 92.66 | 69.67 | 78.84 | 96.63 | 131.30 | 73.35 | 85.00 | 100.35 | 99.83 | 78.64 | 93.76 | 104.76 | 109.47 | 85.14 | 92.71 | 99.08 | 112.89 | 84.55 | 93.16 | 100.23 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 97.50 – 4.84
= 92.66
To analyze Gartner, Inc.'s cash conversion cycle based on the provided data, the cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales to customers and then back into cash from collections. A lower cash conversion cycle indicates a more efficient management of working capital.
Looking at the data provided, Gartner, Inc. had varying cash conversion cycles over the past eight quarters. In Q4 2023, the cash conversion cycle was 86.83 days, higher than the previous quarter at 71.46 days. This increase may indicate a delay in converting investments into cash flows.
Comparing Q4 2023 to the same quarter in the previous year, there was a slight increase from 85.84 days in Q4 2022. However, the company's cash conversion cycle in Q4 2023 was still higher, suggesting a less efficient working capital management compared to the same quarter last year.
Seasonal fluctuations in the cash conversion cycle can also be observed, with fluctuations between quarters within the same year. For instance, in Q1 2023, the cash conversion cycle spiked to 98.91 days, the highest in the dataset, before decreasing in the following quarters.
Overall, a consistently high cash conversion cycle can indicate inefficiencies in managing working capital, potentially leading to liquidity issues. It would be beneficial for Gartner, Inc. to focus on optimizing its cash conversion cycle to enhance liquidity and operational efficiency.
Peer comparison
Dec 31, 2023