Gartner Inc (IT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,279,900 | 1,153,400 | 1,088,380 | 441,769 | 378,570 |
| Long-term debt | US$ in thousands | 2,448,700 | 2,453,610 | 2,456,830 | 1,958,290 | 2,043,890 |
| Total stockholders’ equity | US$ in thousands | 680,634 | 227,798 | 371,058 | 1,090,430 | 938,593 |
| Return on total capital | 40.90% | 43.01% | 38.49% | 14.49% | 12.69% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,279,900K ÷ ($2,448,700K + $680,634K)
= 40.90%
Gartner, Inc.'s return on total capital has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate returns from its total capital employed. The return on total capital increased from 12.16% in 2019 to 35.40% in 2023. This signifies a significant enhancement in the company's efficiency in utilizing its total capital resources to generate profits. The consistent growth in return on total capital reflects Gartner's capacity to generate higher returns for both equity and debt holders. The company's management is effectively utilizing its capital structure to drive profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2023