Gartner Inc (IT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,835,920 | 7,299,740 | 7,416,320 | 7,315,970 | 7,151,290 |
| Total stockholders’ equity | US$ in thousands | 680,634 | 227,798 | 371,058 | 1,090,430 | 938,593 |
| Financial leverage ratio | 11.51 | 32.04 | 19.99 | 6.71 | 7.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,835,920K ÷ $680,634K
= 11.51
The financial leverage ratio measures the extent to which a company utilizes debt to finance its operations and growth, indicating its level of financial risk. In the case of Gartner, Inc., we observe fluctuations in the financial leverage ratio over the past five years.
At the end of December 2023, Gartner, Inc. had a financial leverage ratio of 11.51, indicating a moderate level of debt in its capital structure relative to its equity. This represents a significant decrease from the previous year's ratio of 32.04, suggesting a notable reduction in the company's reliance on debt financing.
Comparing to the ratios from 2021 (19.99), 2020 (6.71), and 2019 (7.62), we see a fluctuating pattern in Gartner's financial leverage over the years. This variability may reflect changes in the company's borrowing activities, capital structure adjustments, or strategic shifts in its financial management approach.
Overall, the downward trend in the financial leverage ratio from 2022 to 2023 could indicate a strategic effort by Gartner, Inc. to strengthen its financial position by reducing debt levels and enhancing financial stability. However, it is essential to further analyze the company's financial statements and operating performance to gain a holistic understanding of its leverage dynamics and overall financial health.
Peer comparison
Dec 31, 2023