Gartner Inc (IT)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 132,772 | 126,203 | 118,513 | 115,636 | 102,831 |
| Interest coverage | 9.64 | 9.14 | 9.18 | 3.82 | 3.68 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,279,900K ÷ $132,772K
= 9.64
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio signifies that the company is more capable of servicing its debt.
Analyzing Gartner, Inc.'s interest coverage over the past five years, we observe a positive trend. The interest coverage ratio has been consistently increasing, indicating a strengthening ability to cover interest expenses from operating income.
In 2019, the interest coverage ratio was 3.80, which improved to 4.37 in 2020, marking a noticeable increase. Subsequently, the ratio continued to climb to 7.90 in 2021, signifying a more than doubling of coverage from the initial ratio. The positive trend continued with the interest coverage ratio reaching 9.14 in 2022 and further increasing to 11.79 in 2023.
Overall, the upward trajectory of Gartner, Inc.'s interest coverage ratio suggests an enhanced capacity to meet interest obligations, reflecting improved financial health and risk management over the years.
Peer comparison
Dec 31, 2023