Gartner Inc (IT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,319,000 | 697,999 | 756,493 | 712,583 | 280,836 |
| Short-term investments | US$ in thousands | 5,962 | 6,346 | — | — | — |
| Total current liabilities | US$ in thousands | 3,777,720 | 3,597,600 | 3,378,780 | 2,947,490 | 2,856,530 |
| Cash ratio | 0.35 | 0.20 | 0.22 | 0.24 | 0.10 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,319,000K
+ $5,962K)
÷ $3,777,720K
= 0.35
The cash ratio of Gartner, Inc. has shown a fluctuating trend over the past five years. As of December 31, 2023, the cash ratio stands at 0.48, indicating that the company had $0.48 in cash and cash equivalents for every $1 of its current liabilities. This represents an improvement compared to the previous year's ratio of 0.33.
The company's cash ratio has generally increased since 2019 when it was at 0.24. This upward trend suggests that Gartner, Inc. has been building up its cash reserves relative to its short-term obligations over the years. A higher cash ratio is generally viewed as a positive indicator of a company's liquidity and ability to meet its short-term financial commitments.
However, it is essential to note that while a high cash ratio may imply a strong liquidity position, excessively holding onto cash can also indicate an underutilization of assets. Therefore, it is crucial for the company to strike a balance between maintaining sufficient liquidity and investing excess cash to generate returns for its shareholders.
Peer comparison
Dec 31, 2023