GATX Corporation (GATX)

Liquidity ratios

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
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
Quick ratio 48.96 22.63 35.55 12.23 30.27 78.07 42.26 70.12 22.88 30.98 28.00 53.10 15.55 39.29 95.64 2.35 15.07 1.27 14.78 20.65
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

The liquidity ratios of GATX Corp., specifically the current ratio, quick ratio, and cash ratio, have exhibited fluctuations over the past eight quarters.

The current ratio, reflecting the company's ability to cover its short-term liabilities with its current assets, has shown volatility during the period under review. The ratio ranged from a low of 1.74 in Q3 2023 to a high of 4.30 in Q1 2022. The current ratio peaked in Q1 2022 and has since experienced a downward trend, indicating a potential decrease in the company's short-term liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, displayed similar fluctuations. This ratio ranged from 1.74 in Q3 2023 to 4.29 in Q1 2022. The quick ratio followed a pattern similar to the current ratio, suggesting a decline in GATX Corp.'s ability to meet its short-term obligations without relying on inventory.

The cash ratio, representing the company's ability to cover its current liabilities with cash and cash equivalents, also varied significantly over the quarters. It ranged from 0.87 in Q3 2023 to 3.43 in Q1 2022. The cash ratio showed a similar trend to the current and quick ratios, indicating potential challenges in GATX Corp.'s short-term liquidity position in recent quarters.

Overall, the fluctuating liquidity ratios of GATX Corp. suggest a changing liquidity position over the quarters, which may require further analysis to assess the company's ability to meet its short-term financial obligations effectively.

Additional liquidity measure

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 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

The cash conversion cycle of GATX Corp. has shown a fluctuating trend over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

In the most recent quarter, Q4 2023, GATX Corp.'s cash conversion cycle increased to 56.50 days from 54.79 days in Q3 2023, indicating that the company took longer to convert its resources into cash during this period. This could be due to various factors such as delays in inventory turnover or collections from customers.

Comparing the current cycle with historical data, it is notable that the cycle has generally been increasing since Q1 2022 when it was at 46.83 days. This suggests that GATX Corp. may be facing challenges in efficiently managing its working capital and optimizing its cash flow processes.

Overall, monitoring and improving the cash conversion cycle is crucial for GATX Corp. to enhance its liquidity, reduce operating costs, and strengthen its financial health in the long run. This may involve streamlining inventory management, implementing efficient payment and collection systems, and optimizing operational processes to shorten the cycle and improve cash flow efficiency.