GATX Corporation (GATX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	593,400	603,000	566,800	819,600	867,200
Inventory	US$ in thousands	74,000	60,200	52,000	64,300	68,400
Inventory turnover		8.02	10.02	10.90	12.75	12.68

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $593,400K ÷ $74,000K
= 8.02

Inventory turnover measures how many times a company sells and replaces its inventory within a given period. The table shows that GATX Corp.'s inventory turnover has been consistently reported as 0.00 for the past five years, indicating that the company is not effectively managing its inventory or experiencing challenges in converting its inventory into sales. A low or zero inventory turnover may suggest overstocking, obsolete inventory, or inefficient inventory management practices. Therefore, GATX Corp. may need to review and improve its inventory management processes to enhance operational efficiency and financial performance.