GATX Corporation (GATX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,585,500 | 1,410,900 | 1,273,000 | 1,257,400 | 1,209,200 |
| Property, plant and equipment | US$ in thousands | 10,449,700 | 9,411,200 | 8,250,300 | 7,784,800 | 7,170,700 |
| Fixed asset turnover | 0.15 | 0.15 | 0.15 | 0.16 | 0.17 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,585,500K ÷ $10,449,700K
= 0.15
The fixed asset turnover ratio for GATX Corporation has been declining over the years, from 0.17 in December 2020 to 0.15 in December 2024. This indicates that the company is generating fewer sales revenue relative to its fixed assets. A decreasing fixed asset turnover ratio could suggest that the company is not efficiently utilizing its fixed assets to generate sales. This may be a cause for concern as it could indicate issues with asset utilization efficiency or potential overinvestment in fixed assets. Further analysis would be needed to pinpoint the specific reasons behind this trend and evaluate the company's asset management strategies.
Peer comparison
Dec 31, 2024