GATX Corporation (GATX)

Receivables 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
Receivables	US$ in thousands	87,900	75,200	70,000	70,800	71,400	71,900	68,400	69,900	69,800	75,200	83,300	81,800	74,700	70,600	71,400	76,900	87,100	93,100	97,800	79,900
Receivables turnover		16.05	18.15	18.94	18.30	17.83	17.68	18.48	18.14	18.01	16.51	14.79	14.86	16.19	17.07	16.80	15.56	13.80	13.51	13.38	17.03

December 31, 2023 calculation

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

The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. It is calculated by dividing net credit sales by average accounts receivable. In the case of GATX Corp., the receivables turnover ratio has been relatively stable over the past eight quarters, ranging from 6.46 to 7.79.

A higher receivables turnover ratio indicates that the company is collecting payments more quickly, which is generally a positive sign of efficiency. On the other hand, a lower ratio may suggest potential issues with collections or credit policies.

GATX Corp.'s receivables turnover ratio has shown a slight decreasing trend from Q1 2022 to Q4 2023. This could indicate that the company is taking longer to collect payments from its customers during this period. It is important for the company to investigate the reasons behind this trend and take appropriate measures to improve efficiency in receivables management.

Overall, while GATX Corp.'s receivables turnover ratio has been relatively consistent, management should continue to monitor this ratio and implement strategies to ensure timely collection of receivables to maintain healthy cash flow and liquidity.