Gartner Inc (IT)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,933,150 | 1,768,290 | 1,235,800 | 1,319,000 | 1,249,360 | 1,172,830 | 893,512 | 697,999 | 528,687 | 360,473 | 456,175 | 756,493 | 765,500 | 796,257 | 445,995 | 712,583 | 553,715 | 356,633 | 227,850 | 280,836 |
| Short-term investments | US$ in thousands | — | — | 7,060 | 5,962 | 8,117 | 7,848 | 5,909 | 6,346 | 4,351 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,696,220 | 1,305,750 | 1,565,960 | 1,601,230 | 1,140,560 | 1,271,790 | 1,523,440 | 1,556,790 | 1,047,140 | 1,172,000 | 1,326,400 | 1,365,180 | 969,966 | 1,102,560 | 1,175,430 | 1,241,510 | 948,864 | 1,048,520 | 1,148,560 | 1,326,010 |
| Total current liabilities | US$ in thousands | 3,969,020 | 3,471,960 | 3,640,290 | 3,777,720 | 3,312,710 | 3,337,250 | 3,454,260 | 3,597,600 | 3,085,890 | 3,178,380 | 3,260,420 | 3,378,780 | 2,904,540 | 2,909,610 | 2,812,420 | 2,947,490 | 2,521,560 | 2,539,320 | 2,530,340 | 2,856,530 |
| Quick ratio | 0.91 | 0.89 | 0.77 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,933,150K
+ $—K
+ $1,696,220K)
÷ $3,969,020K
= 0.91
The quick ratio, also known as the acid-test ratio, is a financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.
For Gartner Inc, we observe fluctuations in the quick ratio over the given periods. The quick ratio started at 0.56 on December 31, 2019, indicating that the company had $0.56 of highly liquid assets for every dollar of current liabilities. The ratio decreased to 0.48 on June 30, 2022, signaling a potential liquidity strain during that period. However, it improved thereafter, reaching 0.91 on December 31, 2024, suggesting an enhancement in the company's ability to cover its short-term obligations with its liquid assets.
Overall, it is crucial for Gartner Inc to maintain a healthy quick ratio above 1.0 to ensure it can meet its immediate payment requirements without relying heavily on selling inventory or obtaining additional financing. The increasing trend in the quick ratio towards the end of the period is a positive indicator of the company's liquidity position.
Peer comparison
Dec 31, 2024