Gartner Inc (IT)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,178,640 | 1,107,139 | 1,149,997 | 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 |
| Interest expense (ttm) | US$ in thousands | 4,591 | 25,385 | 124,600 | 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 |
| Interest coverage | 256.73 | 43.61 | 9.23 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,178,640K ÷ $4,591K
= 256.73
Interest coverage is a financial ratio that indicates a company's ability to pay interest on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.
Analyzing Gartner Inc's interest coverage based on the provided data, we can observe fluctuations in the ratio over the years. The interest coverage ratio started at 3.68 on December 31, 2019, and generally increased over the following periods, reaching a peak of 256.73 on December 31, 2024.
A lower interest coverage ratio indicates that the company may have difficulty meeting its interest obligations, while a higher ratio suggests that the company is comfortably able to cover its interest expenses. Therefore, the increasing trend in Gartner Inc's interest coverage ratio reflects an improving ability to cover its interest payments over time.
It is important to note that a sudden, significant increase in the interest coverage ratio, as seen in Gartner Inc's ratio on December 31, 2024, may be attributed to various factors such as changes in EBIT, interest expenses, or one-time events impacting the financials.
Overall, the trend in Gartner Inc's interest coverage ratio shows a positive trajectory, indicating a strengthening ability to make interest payments and implying a potentially lower risk of default on debt obligations.
Peer comparison
Dec 31, 2024