GATX Corporation (GATX)

Working capital 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
Total current assets	US$ in thousands	612,600	583,800	466,100	431,200	306,500
Total current liabilities	US$ in thousands	11,000	17,300	18,100	23,600	15,800
Working capital turnover		2.35	2.25	2.81	2.97	4.14

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,410,900K ÷ ($612,600K – $11,000K)
= 2.35

The working capital turnover ratio for GATX Corp. has experienced fluctuations over the past five years. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.

In 2023, the working capital turnover ratio was 2.78, showing a slight increase from the previous year. This implies that GATX Corp. was able to generate $2.78 in revenue for every dollar of working capital invested during the year.

Compared to 2021 and 2020, where the working capital turnover ratios were 3.41 and 3.44 respectively, there was a noticeable decrease in the efficiency in 2022. This could indicate that GATX Corp. may have faced challenges in efficiently utilizing its working capital during that year.

Furthermore, the significant drop in the working capital turnover ratio in 2019 to 6.18 suggests an exceptional efficiency in the utilization of working capital, leading to a high level of revenue generation per unit of working capital invested.

Overall, it is essential for GATX Corp. to consistently monitor and improve its working capital turnover ratio to ensure optimal utilization of resources and enhance financial performance.