Gartner Inc (IT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.31 | 0.32 | 0.31 | 0.34 | 0.33 | 0.33 | 0.34 | 0.38 | 0.37 | 0.35 | 0.33 | 0.35 | 0.34 | 0.28 | 0.27 | 0.29 | 0.28 | 0.30 | 0.29 |
| Debt-to-capital ratio | 0.64 | 0.70 | 0.77 | 0.78 | 0.81 | 0.81 | 0.84 | 0.92 | 1.03 | 1.06 | 0.95 | 0.87 | 0.88 | 0.82 | 0.69 | 0.64 | 0.65 | 0.66 | 0.70 | 0.69 |
| Debt-to-equity ratio | 1.81 | 2.31 | 3.42 | 3.60 | 4.32 | 4.18 | 5.19 | 10.77 | — | — | 20.79 | 6.62 | 7.35 | 4.66 | 2.19 | 1.80 | 1.89 | 1.95 | 2.29 | 2.18 |
| Financial leverage ratio | 6.28 | 7.37 | 10.74 | 11.51 | 12.78 | 12.54 | 15.60 | 32.04 | — | — | 59.12 | 19.99 | 20.91 | 13.62 | 7.78 | 6.71 | 6.59 | 6.87 | 7.64 | 7.62 |
Gartner Inc's solvency ratios reflect its ability to meet its long-term financial obligations.
1. Debt-to-Assets Ratio: This ratio indicates the proportion of Gartner's assets financed by debt. Over the past five years, the trend shows a slight increase from 0.29 as of December 31, 2019, to 0.29 as of September 30, 2024. This suggests that Gartner has been maintaining a relatively stable level of debt in relation to its assets.
2. Debt-to-Capital Ratio: The debt-to-capital ratio measures the extent to which Gartner's capital structure is reliant on debt. The ratio has exhibited fluctuations over the years, reaching a peak of 1.06 as of June 30, 2022, before decreasing to 0.64 as of December 31, 2024. This indicates that Gartner's dependency on debt for capital has varied significantly during the period.
3. Debt-to-Equity Ratio: The debt-to-equity ratio signifies the amount of debt financing relative to equity. Gartner's debt-to-equity ratio fluctuated notably, with a substantial increase from 2.19 as of March 31, 2021, to a peak of 20.79 as of March 31, 2022, before declining to 1.81 as of December 31, 2024. The significant spike in the ratio in 2022 may indicate increased financial risk and reliance on debt financing.
4. Financial Leverage Ratio: This ratio measures the extent to which Gartner's assets are funded through debt. The financial leverage ratio surged from 7.78 as of March 31, 2021, to a peak of 59.12 as of March 31, 2022, before decreasing to 6.28 as of December 31, 2024. The sharp increase in the ratio in 2022 suggests a significant rise in the company's financial risk and leverage.
Overall, Gartner Inc's solvency ratios demonstrate fluctuations in its leverage and debt levels over the years, indicating periods of increased financial risk and varying degrees of reliance on debt for funding its operations and growth. Stakeholders should carefully monitor these ratios to assess Gartner's long-term financial stability and risk exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Gartner Inc shows a fluctuating trend over the provided period. It started at 3.68 at December 31, 2019, indicating that the company had 3.68 times more earnings before interest and taxes (EBIT) than it had to pay in interest expenses.
This ratio improved gradually, reaching a peak of 11.81 at September 30, 2023, implying a significant enhancement in the company's ability to cover its interest payments. However, there was a notable decline to 9.64 at December 31, 2023, followed by a further decrease to 9.23 at March 31, 2024.
The most significant change occurred at September 30, 2024, where the interest coverage ratio saw a substantial increase to 43.61, and then a remarkable spike to 256.73 at December 31, 2024. Such a sudden and substantial rise in the interest coverage ratio may indicate a significant surge in earnings or a decline in interest expenses during this period.
Overall, while there were fluctuations in the interest coverage ratio over the period under review, the significant increase in the ratio towards the end of the period could be a positive indicator of improved financial health and a stronger ability to meet interest obligations for Gartner Inc. It would be essential to delve deeper into the reasons behind these fluctuations to gain a better understanding of the company's financial performance and debt repayment capacity.