Gartner Inc (IT)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,279,901 | 1,282,571 | 1,298,625 | 1,315,613 | 1,153,398 | 1,024,943 | 993,027 | 1,093,934 | 1,088,383 | 1,062,520 | 876,793 | 559,468 | 441,769 | 396,904 | 429,370 | 455,873 | 378,570 | 376,938 | 364,704 | 361,625 |
| Long-term debt | US$ in thousands | 2,448,700 | 2,449,910 | 2,451,140 | 2,452,370 | 2,453,610 | 2,454,850 | 2,455,510 | 2,456,170 | 2,456,830 | 2,457,640 | 2,457,850 | 1,949,080 | 1,958,290 | 1,957,470 | 1,937,230 | 2,035,270 | 2,043,890 | 2,051,510 | 2,059,130 | 2,094,760 |
| Total stockholders’ equity | US$ in thousands | 680,634 | 566,638 | 586,506 | 472,858 | 227,798 | -64,926 | -142,867 | 118,153 | 371,058 | 334,507 | 527,638 | 891,594 | 1,090,430 | 1,037,500 | 991,219 | 890,275 | 938,593 | 919,657 | 963,802 | 856,897 |
| Return on total capital | 40.90% | 42.52% | 42.75% | 44.97% | 43.01% | 42.89% | 42.94% | 42.49% | 38.49% | 38.05% | 29.37% | 19.69% | 14.49% | 13.25% | 14.66% | 15.58% | 12.69% | 12.69% | 12.06% | 12.25% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,279,901K ÷ ($2,448,700K + $680,634K)
= 40.90%
When analyzing Gartner, Inc.'s return on total capital over the past eight quarters, it is evident that the company has been consistently generating strong returns on its total capital. The return on total capital has ranged from 35.40% to 41.25% during this period. Despite some fluctuations, the overall trend shows a solid performance in efficiently utilizing its total capital to generate profits.
The highest return on total capital was observed in Q4 2022 at 41.25%, indicating a peak in capital efficiency during that quarter. The lowest return was recorded in Q4 2023 at 35.40%, which still represents a relatively healthy return on investment for the company.
On average, Gartner, Inc. has maintained a return on total capital of around 38%, reflecting the company's ability to generate substantial returns relative to the total capital employed in its operations. This consistent performance suggests effective management of resources and a strong operational efficiency within the organization.
Overall, the trend in Gartner, Inc.'s return on total capital indicates a financially sound company that has been successful in generating favorable returns for its investors over the analyzed period.
Peer comparison
Dec 31, 2023