Gartner Inc (IT)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,156,290 | 1,279,900 | 1,153,400 | 1,088,380 | 441,769 |
| Interest expense | US$ in thousands | 4,591 | 132,772 | 126,203 | 118,513 | 115,636 |
| Interest coverage | 251.86 | 9.64 | 9.14 | 9.18 | 3.82 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,156,290K ÷ $4,591K
= 251.86
Based on the interest coverage data provided for Gartner Inc, we observe a positive trend over the years. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income.
In December 2020, the interest coverage ratio was 3.82, indicating that Gartner's operating income was sufficient to cover its interest expense 3.82 times. This ratio improved significantly to 9.18, 9.14, and 9.64 in the following years - December 2021, December 2022, and December 2023, respectively. This trend suggests an increasing ability of Gartner Inc to meet its interest obligations comfortably.
Notably, in December 2024, the interest coverage ratio spiked to 251.86, signaling a substantial improvement in the company's financial strength and capacity to cover its interest expenses many times over. This exceptionally high ratio may indicate a significant increase in operating income relative to interest expenses or a decrease in interest expenses.
Overall, the consistent improvement in Gartner Inc's interest coverage ratio reflects a stronger financial position and indicates that the company has been effectively managing its interest costs relative to its operating income over the years.
Peer comparison
Dec 31, 2024