Gartner Inc (IT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,933,150 | 1,319,000 | 697,999 | 756,493 | 712,583 |
| Short-term investments | US$ in thousands | — | 5,962 | 6,346 | — | — |
| Total current liabilities | US$ in thousands | 3,969,020 | 3,777,720 | 3,597,600 | 3,378,780 | 2,947,490 |
| Cash ratio | 0.49 | 0.35 | 0.20 | 0.22 | 0.24 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,933,150K
+ $—K)
÷ $3,969,020K
= 0.49
The cash ratio of Gartner Inc has displayed fluctuating trends over the years. As of December 31, 2020, the cash ratio stood at 0.24, indicating that the company had $0.24 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2021, the cash ratio decreased slightly to 0.22, suggesting a slight reduction in liquidity. This trend continued into December 31, 2022, with the cash ratio declining further to 0.20.
However, there was a notable improvement in liquidity by December 31, 2023, as the cash ratio increased to 0.35, indicating that the company had more cash on hand relative to its current liabilities. By December 31, 2024, the cash ratio experienced a significant rise to 0.49, signaling a substantial increase in liquidity and the company's ability to cover its short-term obligations with cash reserves.
Overall, the cash ratio analysis reflects varying levels of liquidity for Gartner Inc over the years, with periods of both decreases and increases in cash availability relative to current liabilities. It is essential for the company to maintain a balance between cash reserves and liabilities to ensure financial stability and meet short-term obligations efficiently.
Peer comparison
Dec 31, 2024