GATX Corporation (GATX)

Receivables 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
Receivables	US$ in thousands	87,900	71,400	69,800	74,700	87,100
Receivables turnover		16.05	17.83	18.01	16.19	13.80

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,410,900K ÷ $87,900K
= 16.05

The receivables turnover ratio measures the efficiency of GATX Corp. in collecting outstanding receivables from its customers during a specific period. A higher turnover ratio indicates that the company is effectively managing its receivables and collecting payments in a timely manner.

From the data provided, GATX Corp.'s receivables turnover ratio has fluctuated over the past five years. In 2023, the receivables turnover was 6.46, which decreased from 7.86 in 2022 and 7.68 in 2021. This decline suggests that the company took longer to collect receivables in 2023 compared to the prior two years. However, the 2023 turnover ratio of 6.46 still indicates that GATX Corp. is collecting their receivables approximately 6.46 times during the year.

When compared to 2020 and 2019, the 2023 turnover ratio is lower than the 8.50 and 8.14 turnover ratios, respectively. This trend indicates a potential slowdown in receivables collection efficiency in 2023 compared to the two preceding years.

In summary, GATX Corp. experienced a decrease in receivables turnover in 2023 compared to the previous years, suggesting a potential need to focus on improving the collection of outstanding receivables to enhance overall efficiency and cash flow management.