GATX Corporation (GATX)

Receivables 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
Receivables	US$ in thousands	199,100	87,900	71,400	69,800	74,700
Receivables turnover		7.96	16.05	17.83	18.01	16.19

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,585,500K ÷ $199,100K
= 7.96

Given the data provided for GATX Corporation's receivables turnover ratio over the years, we observe fluctuations in this metric.

In 2020, the receivables turnover ratio stood at 16.19, indicating that on average, GATX collected its accounts receivable approximately 16 times during that year. The ratio then improved in 2021 to 18.01, suggesting a more efficient collection of receivables.

Despite a slight decrease in 2022 to 17.83, the company still maintained a relatively healthy turnover rate. However, by 2023, the ratio dropped significantly to 16.05, which may raise concerns about the collection efficiency of receivables during that period.

The most significant decline was seen in 2024, with the ratio plummeting to 7.96. This sharp decrease could indicate potential challenges in collecting accounts receivable promptly or efficiently during that year.

Overall, fluctuations in the receivables turnover ratio suggest varying levels of effectiveness in managing accounts receivable collections over the years, with potential implications for GATX Corporation's liquidity and financial health. Monitoring this ratio and investigating the reasons behind any significant changes can provide valuable insights into the company's operational and financial performance.