Gartner Inc (IT)

Based on the provided data, Gartner Inc's solvency ratios show some fluctuations over the years:

1. Debt-to-assets ratio: Gartner's debt-to-assets ratio has been relatively stable, ranging from 0.27 to 0.34 over the years. This indicates that, on average, the company finances around 27% to 34% of its assets through debt.

2. Debt-to-capital ratio: The debt-to-capital ratio has shown significant variations, increasing from 0.64 in 2020 to 0.92 in 2022, before dropping back to 0.64 in 2024. This suggests that debt has played a substantial role in financing the company's operations, with the highest proportion in 2022.

3. Debt-to-equity ratio: Gartner's debt-to-equity ratio has also been volatile, surging from 1.80 in 2020 to 10.77 in 2022, then decreasing to 1.81 in 2024. The steep increase in 2022 indicates that the company relied more on debt than equity to fund its operations during that period.

4. Financial leverage ratio: The financial leverage ratio, which reflects the company's debt relative to its equity, followed a similar trend to the debt-to-equity ratio. It escalated from 6.71 in 2020 to 32.04 in 2022, signifying high financial leverage, before dropping to 6.28 in 2024.

Overall, Gartner Inc's solvency ratios demonstrate some degree of reliance on debt financing, with fluctuations indicating varying levels of financial risk and leverage over the years. Investors and stakeholders should keep a close watch on these ratios to assess the company's ability to meet its financial obligations and manage its debt effectively.

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Coverage ratios

The interest coverage ratio for Gartner Inc has seen a positive trend over the years based on the provided data. In December 2020, the interest coverage ratio was 3.82, indicating that the company's operating income was able to cover its interest expenses 3.82 times.

Subsequently, in December 2021, the interest coverage ratio improved significantly to 9.18 and remained relatively stable in December 2022 and December 2023 at 9.14 and 9.64, respectively. This suggests that Gartner Inc's ability to meet its interest obligations from its operating income strengthened during these years.

The most notable change occurred in December 2024, where the interest coverage ratio surged to 251.86. Such a significant increase could be attributed to a substantial boost in operating income or a decrease in interest expenses, or a combination of both.

Overall, the improving trend in Gartner Inc's interest coverage ratio indicates a healthy financial position and suggests that the company has sufficient earnings to cover its interest payments, ultimately reducing the risk of financial distress due to interest burdens.