GATX Corporation (GATX)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	450,700	303,700	344,300	292,200	151,000
Short-term investments	US$ in thousands	0	148,500	0	5,600	1,400
Total current liabilities	US$ in thousands	11,000	17,300	18,100	23,600	15,800
Cash ratio		40.97	26.14	19.02	12.62	9.65

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($450,700K + $0K) ÷ $11,000K
= 40.97

The cash ratio of GATX Corp. has shown variations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

In 2023, the cash ratio decreased to 1.86 from 2.12 in 2022, suggesting a slight decrease in the company's ability to cover its short-term liabilities with cash. However, the ratio still remains above 1, indicating that GATX Corp. has sufficient cash to cover its immediate obligations.

Comparing to previous years, in 2021, the cash ratio was 1.65, lower than the ratios of 2022 and 2023 but higher than the ratio in 2020, which was 1.98. The cash ratio in 2019 was significantly lower at 0.92, indicating a lower level of cash available to cover short-term liabilities.

Overall, the trend in GATX Corp.'s cash ratio demonstrates fluctuations but generally suggests that the company has maintained a satisfactory level of liquidity over the past five years to meet its short-term obligations. It is essential to monitor the cash ratio in conjunction with other financial metrics to assess the company's overall financial health and liquidity position.