GATX Corporation (GATX)

Working capital 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
Total current assets	US$ in thousands	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	306,500	141,700	384,400	328,300
Total current liabilities	US$ in thousands	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	15,800	112,000	26,000	15,900
Working capital turnover		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	4.14	42.36	3.65	4.36

December 31, 2023 calculation

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

Based on the data provided, the working capital turnover for GATX Corp. has displayed fluctuations over the past eight quarters. The company's working capital turnover ratio ranged from a low of 2.04 in Q1 2022 to a high of 7.93 in Q2 2022, showcasing significant variability in how efficiently the company is utilizing its working capital.

It is important to note that a higher working capital turnover ratio indicates that the company is effectively managing its working capital to generate sales. Therefore, the significant increase in Q3 2023, with a ratio of 7.84, suggests an improvement in the efficiency of GATX Corp.'s working capital management compared to previous quarters.

However, the fluctuations in the working capital turnover ratio over the quarters may indicate inconsistencies in the company's operations or changes in its working capital management strategies. Further analysis would be required to understand the underlying reasons for these fluctuations and to assess the overall effectiveness of GATX Corp.'s working capital management.