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.
Peer comparison
Dec 31, 2023