GATX Corporation (GATX)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		16.05	18.15	18.94	18.30	17.83	17.68	18.48	18.14	18.01	16.51	14.79	14.86	16.19	17.07	16.80	15.56	13.80	13.51	13.38	17.03
DSO	days	22.74	20.11	19.27	19.95	20.47	20.64	19.75	20.12	20.26	22.11	24.67	24.56	22.55	21.39	21.73	23.46	26.45	27.01	27.27	21.43

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 16.05
= 22.74

To analyze GATX Corp.'s days of sales outstanding (DSO) trend, we can observe an increasing pattern in the DSO metric over the last eight quarters. The DSO has steadily risen from 46.45 days in Q4 2022 to 56.50 days in Q4 2023. This indicates a lengthening of the company's accounts receivable collection period, suggesting potential challenges in receiving payments from customers within a reasonable timeframe.

The upward trend in DSO may be a cause for concern as it implies that the company is taking longer to collect revenue from sales, which could impact its cash flow and liquidity position. A high DSO could also suggest potential issues with credit policies, customer payment behaviors, or inefficiencies in the company's accounts receivable management.

Further analysis and comparison with industry peers or historical data would be beneficial to understand the reasons behind the increasing DSO trend and to evaluate the effectiveness of GATX Corp.'s accounts receivable management strategies. It may be necessary for the company to review its credit policies, streamline collections processes, or address any underlying issues to improve its cash flow and financial performance.