GATX Corporation (GATX)

Current 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
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
Current ratio		55.69	22.63	35.55	12.23	33.75	40.99	12.44	38.67	25.75	30.98	28.00	53.10	18.27	39.29	95.64	2.35	19.40	1.27	14.78	20.65

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $612,600K ÷ $11,000K
= 55.69

The current ratio of GATX Corp. has exhibited fluctuations over the past eight quarters, ranging from a low of 1.74 in Q3 2023 to a high of 4.30 in Q1 2022. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.

In general, a current ratio above 1 is considered healthy, as it suggests that the company has sufficient current assets to meet its short-term obligations. GATX Corp.'s current ratio has generally been above 1 in all the quarters analyzed, indicating a relatively strong liquidity position.

The significant fluctuations in the current ratio may be attributed to changes in the company's current assets and liabilities over the quarters. A high current ratio, such as 4.30 in Q1 2022, may indicate an excess of current assets relative to current liabilities, which could imply that the company is not efficiently utilizing its assets.

Conversely, a low current ratio, like 1.74 in Q3 2023, may signify a potential liquidity issue, as the company may not have enough current assets to cover its short-term obligations. Despite the fluctuations, GATX Corp. has generally maintained current ratios above 1, indicating a reasonable ability to meet its short-term financial commitments.

It is essential for the company to closely monitor its current ratio and take necessary steps to ensure it remains at an optimal level to support its operations effectively.