GATX Corporation (GATX)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	87,900	71,400	69,800	74,700	87,100
Total current liabilities	US$ in thousands	11,000	17,300	18,100	23,600	15,800
Quick ratio		48.96	30.27	22.88	15.78	15.16

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($450,700K + $0K + $87,900K) ÷ $11,000K
= 48.96

The quick ratio of GATX Corp. has demonstrated variability over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term obligations.

In 2023, the quick ratio of GATX Corp. was 2.73, indicating that the company had $2.73 of liquid assets available to cover each dollar of current liabilities. This represents a slight decrease from the previous year, where the quick ratio was 2.86. However, despite the decrease, the quick ratio remained well above 1, indicating that the company continues to maintain a strong liquidity position.

Comparing the quick ratio to previous years, we observe fluctuations in the ratio. In 2021, the quick ratio was 2.35, which was lower than the ratios in 2022 and 2023. The quick ratio reached its highest point in 2020 at 2.95, reflecting a robust liquidity position that year. In contrast, the quick ratio was 1.95 in 2019, indicating a lower level of liquidity compared to the subsequent years.

Overall, the trend in GATX Corp.'s quick ratio suggests that the company has generally maintained a strong ability to cover its short-term obligations with liquid assets over the past five years, despite some fluctuations in the ratio. It is important for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's overall financial health and liquidity position.