Gartner Inc (IT)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,279,901 | 1,282,571 | 1,298,625 | 1,315,613 | 1,153,398 | 1,024,943 | 993,027 | 1,093,934 | 1,088,383 | 1,062,520 | 876,793 | 559,468 | 441,769 | 396,904 | 429,370 | 455,873 | 378,570 | 376,938 | 364,704 | 361,625 |
| Interest expense (ttm) | US$ in thousands | 132,772 | 108,573 | 117,039 | 122,200 | 126,203 | 124,774 | 126,087 | 123,758 | 118,513 | 113,592 | 112,531 | 115,437 | 115,637 | 116,345 | 109,880 | 104,333 | 102,831 | 100,796 | 103,707 | 116,562 |
| Interest coverage | 9.64 | 11.81 | 11.10 | 10.77 | 9.14 | 8.21 | 7.88 | 8.84 | 9.18 | 9.35 | 7.79 | 4.85 | 3.82 | 3.41 | 3.91 | 4.37 | 3.68 | 3.74 | 3.52 | 3.10 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,279,901K ÷ $132,772K
= 9.64
Interest coverage is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is generally favorable as it suggests that the company is generating enough operating income to comfortably meet its interest obligations.
Looking at the data for Gartner, Inc., we can see that the interest coverage ratio has been showing a positive trend over the past eight quarters. The interest coverage ratio has consistently improved from 7.51 in Q1 2022 to 11.79 in Q4 2023, indicating that the company's ability to cover its interest expenses has strengthened over time.
This upward trajectory suggests that Gartner, Inc. has been effectively managing its interest expenses relative to its operating income, which is a positive sign for the company's financial health and stability. It indicates that the company is in a strong position to meet its interest obligations and potentially take on more debt if needed in the future.
Peer comparison
Dec 31, 2023