GATX Corporation (GATX)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		7.96	16.05	17.83	18.01	16.19
DSO	days	45.84	22.74	20.47	20.26	22.55

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.96
= 45.84

Based on the data provided, GATX Corporation has shown a favorable trend in its days of sales outstanding (DSO) over the period from December 31, 2020, to December 31, 2024. The DSO decreased from 22.55 days in 2020 to 20.26 days in 2021, indicating that the company is collecting its accounts receivable more efficiently.

Although there was a slight increase to 20.47 days in 2022 and a further increase to 22.74 days in 2023, the DSO levels remained relatively stable during these periods. However, there was a significant spike in DSO to 45.84 days in 2024, which suggests a potential issue in the company's accounts receivable management or credit policies, causing delays in collecting sales proceeds.

Overall, GATX Corporation should closely monitor its DSO and take appropriate steps to address any fluctuations to ensure efficient cash flow management and timely collection of accounts receivable.