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.
Peer comparison
Dec 31, 2023