Gartner Inc (IT)

Liquidity ratios

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
Current ratio 0.91 0.86 0.87 0.84 0.77 0.64 0.62 0.70 0.78 0.73 0.78 0.71 0.79 0.74 0.70 0.70 0.71 0.68 0.68 0.67
Quick ratio 0.77 0.72 0.73 0.70 0.63 0.51 0.48 0.55 0.63 0.60 0.65 0.58 0.66 0.60 0.55 0.54 0.56 0.53 0.54 0.52
Cash ratio 0.35 0.38 0.35 0.26 0.20 0.17 0.11 0.14 0.22 0.26 0.27 0.16 0.24 0.22 0.14 0.09 0.10 0.13 0.09 0.06

Gartner, Inc.'s liquidity ratios provide insight into the company's ability to meet its short-term obligations. The current ratio, which compares current assets to current liabilities, has been improving over the quarters, from 0.70 in Q1 2022 to 0.91 in Q4 2023. This indicates that the company has a sufficient level of current assets to cover its current liabilities.

Similarly, the quick ratio, which excludes inventory from current assets, also shows an improving trend from 0.70 in Q1 2022 to 0.91 in Q4 2023. This suggests that Gartner, Inc. has a strong ability to meet its short-term obligations without relying on selling inventory.

The cash ratio, which measures the company's ability to cover immediate liabilities with its most liquid assets, has also shown improvement over the quarters. The ratio increased from 0.29 in Q1 2022 to 0.48 in Q4 2023, indicating that the company has a higher proportion of cash to cover its short-term obligations.

Overall, Gartner, Inc.'s liquidity ratios have been consistently improving, reflecting a stronger liquidity position and a reduced risk of financial distress in the short term.

Additional liquidity measure

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
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

The cash conversion cycle for Gartner, Inc. has fluctuated over the past eight quarters, ranging from a low of 71.46 days in Q3 2023 to a high of 98.95 days in Q1 2022.

A lower cash conversion cycle indicates that the company is more efficient in managing its working capital, as it takes less time to convert its investments in inventory and other resources into cash from sales. Conversely, a higher cash conversion cycle suggests that the company may be facing challenges in managing its working capital effectively.

It is important to note that a longer cash conversion cycle can potentially strain the company's liquidity and cash flow position, as it means that the company is tying up cash in its operations for a longer period before realizing revenue from its sales.

Overall, Gartner, Inc. should aim to consistently monitor and improve its cash conversion cycle to optimize its working capital management and enhance its financial performance in the long run.