GATX Corporation (GATX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	45.52	—	—	—	36.44	—	366.66	—	33.40	—	—	—	28.54	—	—	—	28.80	—	—	—
Days of sales outstanding (DSO)	days	22.74	20.11	19.27	19.95	20.47	20.64	19.75	20.12	20.26	22.11	24.67	24.56	22.55	21.39	21.73	23.46	26.45	27.01	27.27	21.43
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	68.26	20.11	19.27	19.95	56.91	20.64	386.41	20.12	53.67	22.11	24.67	24.56	51.09	21.39	21.73	23.46	55.24	27.01	27.27	21.43

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 45.52 + 22.74 – —
= 68.26

The cash conversion cycle of GATX Corp. has shown a fluctuating trend over the past eight quarters. It increased from 46.45 days in Q4 2022 to 56.50 days in Q4 2023, indicating a prolonged time taken to convert resources into cash during the most recent quarter. This suggests potential inefficiencies in managing the company's cash flows and working capital.

While there was a slight decrease in the cash conversion cycle in Q3 and Q2 2023 compared to Q4 2023, it remained above the levels seen in the corresponding quarters of 2022. This could imply ongoing challenges in optimizing the company's liquidity position and operational efficiency.

Overall, GATX Corp. should closely monitor its cash conversion cycle and work towards streamlining its processes to shorten the cycle, thereby improving cash flow management and operational effectiveness.