Gartner Inc (IT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 67.76% | 67.26% | 19.31% | 17.39% | 9.76% |
| Operating profit margin | 18.32% | 20.62% | 20.08% | 19.58% | 12.27% |
| Pretax margin | 21.98% | 19.12% | 18.75% | 20.74% | 8.16% |
| Net profit margin | 19.86% | 14.71% | 14.74% | 16.97% | 6.68% |
Gartner Inc has shown a significant improvement in its profitability ratios over the years. The gross profit margin has increased from 9.76% in December 2020 to 67.76% in December 2024, indicating more efficient production and pricing strategies.
Similarly, the operating profit margin has increased steadily from 12.27% in December 2020 to 18.32% in December 2024, showing effective cost management and operational efficiencies.
The pretax margin reflects the company's ability to generate profits before accounting for taxes, with an increase from 8.16% in December 2020 to 21.98% in December 2024. This highlights the company's robust operational performance and strategic decision-making.
Lastly, the net profit margin, which measures the company's profitability after all expenses have been deducted, has shown a positive trend, increasing from 6.68% in December 2020 to 19.86% in December 2024. This indicates that Gartner Inc has been able to efficiently convert its revenues into profits, showcasing strong overall financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.55% | 15.78% | 15.07% | 12.35% | 6.70% |
| Return on assets (ROA) | 14.69% | 11.26% | 11.07% | 10.70% | 3.65% |
| Return on total capital | 30.28% | 40.90% | 43.01% | 38.49% | 14.49% |
| Return on equity (ROE) | 92.24% | 129.65% | 354.61% | 213.86% | 24.46% |
Gartner Inc has shown a positive trend in its profitability ratios over the years, reflecting improved performance.
1. Operating return on assets (Operating ROA) has increased from 6.70% in 2020 to 15.78% in 2023, with a slight dip to 13.55% in 2024. This ratio indicates that for every dollar of assets, the company generated between 6.70% to 15.78% of operating income.
2. Return on assets (ROA) has also shown significant improvement, rising from 3.65% in 2020 to 14.69% in 2024. This demonstrates that the company's efficiency in utilizing its assets to generate profits has increased over the years.
3. Return on total capital has followed a similar upward trend, increasing from 14.49% in 2020 to 30.28% in 2024. This ratio signifies the return earned on both equity and debt capital invested in the company.
4. Return on equity (ROE) has exhibited substantial growth, from 24.46% in 2020 to 354.61% in 2022, before declining to 92.24% in 2024. This ratio indicates the profitability of the company with respect to the shareholders' equity.
Overall, Gartner Inc's profitability ratios suggest that the company has been successful in generating higher returns for its shareholders and efficiently utilizing its assets and capital resources to drive profitability over the years.