Gartner Inc (IT)

The solvency ratios of Gartner, Inc. indicate the firm's ability to meet its long-term financial obligations. Looking at the trends over the past five years, we can observe the following:

1. Debt-to-assets ratio:
The debt-to-assets ratio has fluctuated within a relatively narrow range over the past five years, with a low of 0.27 in 2020 and a high of 0.34 in 2022. This ratio shows that, on average, about 31% of Gartner's assets are financed by debt.

2. Debt-to-capital ratio:
The debt-to-capital ratio has shown some variability over the years, reaching a peak of 0.92 in 2022 and decreasing to 0.78 in 2023. This ratio indicates that, on average, about 78% of Gartner's capital structure is attributed to debt financing.

3. Debt-to-equity ratio:
The debt-to-equity ratio has displayed significant fluctuations, with a notable increase in 2022, where it spiked to 10.81 before decreasing to 3.61 in 2023. This ratio suggests that Gartner relies heavily on debt to finance its operations, with the ratio indicating debt being over three times higher than equity in 2023.

4. Financial leverage ratio:
The financial leverage ratio, which measures the proportion of total assets that are financed by debt, has also shown fluctuations, peaking at 32.04 in 2022 and decreasing to 11.51 in 2023. This indicates that the company has leveraged its assets significantly in the past, but has reduced this leverage in 2023.

Overall, the solvency ratios for Gartner, Inc. suggest that the company has been actively managing its debt levels over the observed period. The decreasing trends in some ratios, such as the debt-to-equity and financial leverage ratios, indicate a potential improvement in the company's financial stability and ability to meet its debt obligations. However, the company should continue to monitor and manage its debt levels to ensure sustainable financial health in the future.

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Coverage ratios

The interest coverage ratio for Gartner, Inc. has shown a consistent upward trend over the past five years, indicating an improving ability to cover interest expenses with operating income. The ratio has increased from 3.80 in 2019 to 11.79 in 2023, reflecting a significant enhancement in the company's financial health and stability. This steady improvement suggests that Gartner, Inc. has been effectively managing its interest obligations and generating sufficient earnings to comfortably meet its interest payment requirements. Overall, the increasing trend in the interest coverage ratio implies a strengthening financial position for Gartner, Inc.