Gartner Inc (IT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,156,290 | 1,279,900 | 1,153,400 | 1,088,380 | 441,769 |
| Long-term debt | US$ in thousands | 2,459,920 | 2,448,700 | 2,453,610 | 2,456,830 | 1,958,290 |
| Total stockholders’ equity | US$ in thousands | 1,359,170 | 680,634 | 227,798 | 371,058 | 1,090,430 |
| Return on total capital | 30.28% | 40.90% | 43.01% | 38.49% | 14.49% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,156,290K ÷ ($2,459,920K + $1,359,170K)
= 30.28%
Gartner Inc has demonstrated a positive trend in its return on total capital over the years, showcasing an impressive increase from 14.49% as of December 31, 2020, to 30.28% as of December 31, 2024. During this period, the return on total capital peaked at 43.01% as of December 31, 2022.
This upward trajectory indicates that Gartner Inc has been effectively utilizing its total capital to generate returns for its investors and stakeholders. The company's ability to enhance its return on total capital signifies efficient capital allocation and operational performance, which are essential factors in sustaining and growing profitability.
It is crucial for stakeholders and investors to monitor these trends in return on total capital as they provide valuable insights into the company's financial health and efficiency in generating profits relative to its invested capital. Overall, the consistent improvement in Gartner Inc's return on total capital reflects positively on its financial performance and management strategies.
Peer comparison
Dec 31, 2024