Gartner Inc (IT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.67% | 19.31% | 17.39% | 9.76% | 7.53% |
| Operating profit margin | 20.62% | 20.08% | 19.58% | 12.27% | 8.85% |
| Pretax margin | 19.12% | 18.75% | 20.74% | 8.16% | 6.59% |
| Net profit margin | 14.71% | 14.74% | 16.97% | 6.68% | 5.58% |
Gartner, Inc.'s profitability ratios have shown overall positive trends over the five-year period from 2019 to 2023.
1. Gross Profit Margin: The gross profit margin has generally been high, ranging from 63.48% in 2019 to 69.50% in 2021. The margins indicate that Gartner has been effectively managing its production and cost of goods sold.
2. Operating Profit Margin: The operating profit margin has also shown an increasing trend, from 8.94% in 2019 to 20.26% in 2022. This indicates improved operational efficiency and control over operating expenses, leading to higher profitability from core business activities.
3. Pretax Margin: The pretax margin has been fluctuating but has generally shown an increasing trend, reaching 19.42% in 2023. This indicates that the company has been successful in managing its pre-tax earnings relative to its total revenues.
4. Net Profit Margin: The net profit margin has shown a similar positive trend, increasing from 5.50% in 2019 to 14.94% in 2023. This demonstrates Gartner's ability to generate consistent profits after all expenses, including taxes and interest payments.
Overall, Gartner, Inc. has shown improvements in its profitability ratios over the five-year period, indicating effective cost management, operational efficiency, and sustained profitability growth.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.78% | 15.07% | 12.35% | 6.70% | 5.18% |
| Return on assets (ROA) | 11.26% | 11.07% | 10.70% | 3.65% | 3.26% |
| Return on total capital | 40.90% | 43.01% | 38.49% | 14.49% | 12.69% |
| Return on equity (ROE) | 129.65% | 354.61% | 213.86% | 24.46% | 24.86% |
Gartner, Inc.'s profitability ratios exhibit a positive trend over the past five years, indicating improving profitability performance. The Operating return on assets (Operating ROA) has shown a gradual increase from 5.31% in 2019 to 14.18% in 2023, indicating the company's ability to generate operating income from its assets has strengthened.
Return on assets (ROA) has also seen an upward trajectory, demonstrating the company's efficiency in generating profits relative to its total assets. The ROA has improved from 3.26% in 2019 to 11.26% in 2023, suggesting better asset utilization and overall profitability.
Return on total capital and Return on equity (ROE) have experienced significant fluctuations over the years but show an overall positive trend. The Return on total capital surged from 12.16% in 2019 to 35.40% in 2023, indicating higher returns on the total invested capital. Similarly, the Return on equity (ROE) increased substantially from 24.86% in 2019 to 129.65% in 2023, reflecting improved profitability for the equity shareholders.
Overall, Gartner, Inc.'s profitability ratios reflect a positive trajectory, indicating enhanced efficiency in generating profits from assets and capital, as well as delivering strong returns to shareholders over the years.