GATX Corporation (GATX)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,410,900	1,273,000	1,257,400	1,209,200	1,202,100
Property, plant and equipment	US$ in thousands	9,411,200	8,250,300	7,784,800	7,170,700	6,457,300
Fixed asset turnover		0.15	0.15	0.16	0.17	0.19

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,410,900K ÷ $9,411,200K
= 0.15

The fixed asset turnover ratio for GATX Corp. has shown a declining trend over the past five years. In 2019, the ratio was at its highest at 0.21, indicating that the company generated $0.21 in revenue for every $1 invested in fixed assets. However, the ratio has gradually decreased to 0.15 in both 2022 and 2023.

This downward trend suggests that GATX Corp. may be becoming less efficient in generating revenue from its fixed assets. A lower fixed asset turnover ratio could indicate underutilization of fixed assets or a decrease in sales relative to the investment in property, plant, and equipment.

It is essential for GATX to closely monitor this ratio and assess the efficiency of its fixed asset utilization to ensure optimal performance and maximize returns on its investments in fixed assets.