GATX Corporation (GATX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	450,700	203,100	317,500	177,400	303,700	596,300	180,300	649,300	344,300	566,000	417,900	958,900	292,200	459,800	492,900	570,700	151,000	48,600	286,600	248,400
Short-term investments	US$ in thousands	0	0	0	0	148,500	604,300	596,500	585,000	0	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		40.97	16.51	29.13	8.74	26.14	73.66	38.84	66.36	19.02	27.34	23.35	48.92	12.38	34.06	83.54	2.07	9.56	0.43	11.02	15.62

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 fluctuated over the past eight quarters. 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 Q4 2023, GATX Corp. had a cash ratio of 1.86, which was higher compared to the previous quarter but lower than the levels seen in Q2 2022 and Q1 2022. This indicates that the company had a sufficient amount of cash to cover its current liabilities in Q4 2023.

In Q3 2023, the cash ratio decreased to 0.87, which was a notable decline from the previous quarter. This could suggest a decrease in the company's ability to cover short-term obligations with cash alone during that period.

Looking back at Q2 and Q1 2023, the cash ratios were 1.49 and 0.91 respectively, showing a mixed performance in maintaining adequate cash reserves relative to short-term liabilities.

Comparing these figures to Q4 2022, where the cash ratio was 2.12, we see a decrease in the company's cash coverage of short-term obligations over the year.

Moreover, Q3 2022 and Q2 2022 had cash ratios of 2.97 and 0.97 respectively, showing further fluctuations in the company's cash position.

In contrast, Q1 2022 had the highest cash ratio in the provided data at 3.43, indicating a robust ability to meet short-term liabilities with cash on hand.

Overall, while the cash ratio of GATX Corp. has varied over the past eight quarters, it is crucial for the company to maintain a healthy cash position to meet its short-term financial obligations effectively.