GATX Corporation (GATX)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,410,900	1,364,900	1,325,800	1,295,300	1,273,000	1,271,300	1,263,800	1,268,200	1,257,400	1,241,300	1,232,200	1,215,600	1,209,200	1,204,800	1,199,200	1,196,200	1,202,100	1,258,000	1,308,900	1,360,900
Property, plant and equipment	US$ in thousands	9,411,200	9,015,400	8,870,700	8,491,900	8,250,300	7,858,200	7,890,900	7,874,900	7,784,800	7,673,500	7,582,700	7,523,200	7,170,700	6,844,200	6,628,400	6,750,400	6,457,300	6,607,700	6,606,300	6,525,900
Fixed asset turnover		0.15	0.15	0.15	0.15	0.15	0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.17	0.18	0.18	0.18	0.19	0.19	0.20	0.21

December 31, 2023 calculation

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

The fixed asset turnover ratio for GATX Corp. has remained relatively stable at around 0.15 to 0.16 over the past eight quarters. This ratio indicates that the company generated $0.15 to $0.16 in revenue for every dollar invested in fixed assets during each quarter.

A fixed asset turnover ratio of less than 1 suggests that the company is not efficiently utilizing its fixed assets to generate revenue. In this case, GATX Corp.'s fixed asset turnover ratio indicates that it may be struggling to generate significant revenue from its fixed assets.

It is important for the company to analyze the reasons behind this low ratio, such as underutilization of assets, inefficient asset management, or declining sales. By improving the efficiency of its fixed asset utilization, GATX Corp. may be able to increase its revenue generation and overall profitability in the future.