Gartner Inc (IT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,236,890 | 1,100,110 | 915,751 | 490,150 | 370,087 |
| Total assets | US$ in thousands | 7,835,920 | 7,299,740 | 7,416,320 | 7,315,970 | 7,151,290 |
| Operating ROA | 15.78% | 15.07% | 12.35% | 6.70% | 5.18% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,236,890K ÷ $7,835,920K
= 15.78%
Operating return on assets (operating ROA) is a key performance metric that reflects the company's ability to generate operating income relative to its total assets. Gartner, Inc.'s operating ROA has displayed an increasing trend over the past five years, indicating improved efficiency in utilizing its assets to generate operating profits.
The operating ROA was 14.18% in 2023, marginally lower than the previous year's 15.19%. Despite the slight decrease, the company maintained a relatively strong performance in efficiently leveraging its assets to generate operating income.
Compared to 2021 and prior years, the operating ROA has shown a significant improvement. In 2021, the operating ROA was 12.43%, marking a notable increase from 6.79% in 2020 and 5.31% in 2019. This upward trend indicates that Gartner, Inc. has become more efficient in generating operating profits relative to its asset base over the past few years.
Overall, the upward trajectory of Gartner, Inc.'s operating ROA signals an improving operational efficiency and effectiveness in utilizing its assets to drive profitability. This trend is a positive indicator of the company's financial performance and management of its asset base.
Peer comparison
Dec 31, 2023