GATX Corporation (GATX)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.38	8.02	10.02	10.90	12.75
DOH	days	108.03	45.52	36.44	33.49	28.64

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.38
= 108.03

In analyzing GATX Corporation's days of inventory on hand (DOH) from December 31, 2020, to December 31, 2024, we observe a gradual increase in the number of days it takes for the company to convert its inventory into sales.

Starting at 28.64 days in 2020, the DOH metric increased to 33.49 days in 2021, showcasing a moderate uptick. This was followed by a more notable increase to 36.44 days in 2022, indicating a longer period of inventory turnover.

The trend continued with a further rise to 45.52 days in 2023, suggesting a potential challenge in managing inventory levels efficiently. Notably, by December 31, 2024, the DOH surged significantly to 108.03 days, reflecting a substantial delay in converting inventory into revenue.

Overall, the increasing trend in GATX Corporation's days of inventory on hand highlights a potential inefficiency in inventory management and raises concerns regarding the company's ability to optimize its inventory levels and maintain competitive operations. Further analysis and scrutiny of the underlying factors driving this trend are recommended to address potential risks and improve overall operational effectiveness.