GATX Corporation (GATX)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 401,600 450,700 303,700 344,300 292,200
Short-term investments US$ in thousands — 0 148,500 0 5,600
Receivables US$ in thousands 199,100 87,900 71,400 69,800 74,700
Total current liabilities US$ in thousands 10,400 11,000 17,300 18,100 23,600
Quick ratio 57.76 48.96 30.27 22.88 15.78

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($401,600K + $—K + $199,100K) ÷ $10,400K
= 57.76

The quick ratio of GATX Corporation has exhibited a consistent and notable increase over the past five years. Starting at 15.78 on December 31, 2020, the ratio has shown steady growth, reaching 22.88 by December 31, 2021, and further improving to 30.27 by December 31, 2022. The trend continued with a significant surge to 48.96 on December 31, 2023, and a remarkable peak of 57.76 on December 31, 2024.

This substantial upward trajectory in the quick ratio indicates that GATX Corporation has significantly strengthened its ability to meet its short-term obligations with liquid assets. The company's liquidity position has improved consistently, reflecting a healthier financial position and enhanced ability to cover immediate liabilities without relying heavily on inventory or other less liquid assets.

Overall, the increasing trend in GATX Corporation's quick ratio suggests a positive financial performance and sound liquidity management over the years, which may enhance its financial stability and flexibility in the face of unforeseen challenges or opportunities.