GATX Corporation (GATX)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,585,500	1,540,700	1,495,400	1,451,900	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
Total current assets	US$ in thousands	672,500	597,600	920,500	575,400	612,600	278,300	387,500	248,200	583,800	668,200	248,700	719,200	466,100	641,200	501,200	1,040,700	431,200	530,400	564,300	647,600
Total current liabilities	US$ in thousands	10,400	11,100	10,700	10,800	11,000	12,300	10,900	20,300	17,300	16,300	20,000	18,600	18,100	20,700	17,900	19,600	23,600	13,500	5,900	275,500
Working capital turnover		2.39	2.63	1.64	2.57	2.35	5.13	3.52	5.68	2.25	1.95	5.53	1.81	2.81	2.00	2.55	1.19	2.97	2.33	2.15	3.21

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,585,500K ÷ ($672,500K – $10,400K)
= 2.39

The working capital turnover ratio of GATX Corporation fluctuated over the analyzed period, with variations in its efficiency in utilizing working capital. The ratio ranged from a low of 1.19 on March 31, 2021, indicating a slowdown in the turnover of working capital, to a high of 5.68 on March 31, 2023, reflecting a significant improvement in working capital efficiency.

It is important to note that higher turnover ratios generally indicate more effective management of working capital, as the company is able to generate more revenue per unit of working capital invested. Conversely, lower ratios may suggest inefficiencies in the utilization of working capital or slower turnover of assets.

GATX Corporation experienced fluctuations in its working capital turnover ratio, which may have been influenced by factors such as changes in sales volume, inventory management, or accounts receivable and payable policies. Further analysis is recommended to understand the underlying reasons for these fluctuations and to assess the overall financial health and operational efficiency of the company.