Gartner Inc (IT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,253,720 | 882,466 | 807,799 | 793,560 | 266,745 |
| Total stockholders’ equity | US$ in thousands | 1,359,170 | 680,634 | 227,798 | 371,058 | 1,090,430 |
| ROE | 92.24% | 129.65% | 354.61% | 213.86% | 24.46% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,253,720K ÷ $1,359,170K
= 92.24%
Gartner Inc's return on equity (ROE) has shown fluctuations over the years. The ROE increased significantly from 24.46% as of December 31, 2020, to 213.86% by December 31, 2021, indicating a notable improvement in the company's profitability relative to its shareholder equity.
The ROE continued to rise steeply to 354.61% as of December 31, 2022, demonstrating a substantial increase in the company's ability to generate profits from its equity. However, there was a decline in ROE to 129.65% by December 31, 2023, suggesting a decrease in profitability compared to the previous year.
By the end of December 31, 2024, the ROE stood at 92.24%, which while lower than the peak in 2022, still indicates that Gartner Inc is effectively utilizing its equity to generate returns for its shareholders. Overall, the company's ROE has shown significant volatility, reflecting changes in profitability and efficiency in utilizing equity.