GATX Corporation (GATX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 16.05 | 17.83 | 18.01 | 16.19 | 13.80 | |
| DSO | days | 22.74 | 20.47 | 20.26 | 22.55 | 26.45 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.05
= 22.74
The days of sales outstanding (DSO) for GATX Corp. have shown a fluctuating trend over the past five years. In 2023, the DSO increased to 56.50 days from 46.45 days in 2022. This suggests that it took GATX Corp. longer to collect its accounts receivables in 2023 compared to the previous year.
When compared to 2021 and 2020, the DSO figures for 2023 and 2022 indicate a deteriorating collection efficiency as the number of days taken to collect sales increased. However, it is worth noting that the DSO in 2023 was lower compared to 2019, suggesting improved efficiency in collecting accounts receivables compared to four years ago.
Overall, monitoring the trend of DSO is crucial for assessing the effectiveness of GATX Corp.'s accounts receivable management and its ability to convert sales into cash. The increase in DSO in 2023 may require further investigation to understand the factors driving the changes in collection efficiency.
Peer comparison
Dec 31, 2023