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Gartner, Inc. (NYSE: IT) Capital Efficiency Analysis

  • Gartner, Inc. (NYSE: IT) showcases a high Return on Invested Capital (ROIC) of 24.87% and a Weighted Average Cost of Capital (WACC) of 8.07%, indicating effective capital management.
  • Mettler-Toledo International Inc. leads with the highest ROIC to WACC ratio among peers, suggesting exceptional capital utilization.
  • ANSYS, Inc. displays a lower ROIC to WACC ratio, indicating its returns do not cover its cost of capital, highlighting a potential area for improvement.

Gartner, Inc. (NYSE: IT) is a leading research and advisory company that provides insights, advice, and tools for leaders in IT, finance, HR, customer service, and support. The company helps clients make informed decisions by offering expert guidance and practical solutions. Gartner competes with firms like CDW Corporation, FLEETCOR Technologies, Mettler-Toledo International, Jack Henry & Associates, and ANSYS, Inc.

Gartner's Return on Invested Capital (ROIC) is 24.87%, while its Weighted Average Cost of Capital (WACC) is 8.07%. This results in a ROIC to WACC ratio of 3.08, indicating that Gartner is effectively using its capital to generate returns that exceed its cost of capital. This efficiency is a positive sign for investors, as it suggests strong capital management.

In comparison, CDW Corporation has a ROIC of 19.21% and a WACC of 7.30%, leading to a ROIC to WACC ratio of 2.63. Although CDW's ratio is lower than Gartner's, it still reflects efficient capital use. FLEETCOR Technologies, however, shows a lower ROIC to WACC ratio of 1.36, with a ROIC of 11.70% and a WACC of 8.59%, indicating less efficient capital utilization.

Mettler-Toledo International Inc. stands out with a ROIC of 37.77% and a WACC of 9.74%, resulting in the highest ROIC to WACC ratio of 3.88 among the peers. This suggests that Mettler-Toledo is generating substantial returns on its investments compared to its cost of capital, making it an attractive option for investors seeking efficient capital use.

Jack Henry & Associates and ANSYS, Inc. have ROIC to WACC ratios of 2.34 and 0.88, respectively. Jack Henry's ratio indicates efficient capital use, while ANSYS's lower ratio suggests that its returns are not covering its cost of capital. Overall, Gartner and Mettler-Toledo demonstrate strong capital efficiency, with Mettler-Toledo leading the peer group.