GATX Corporation (GATX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 84.70% | 57.94% | 52.63% | 54.92% | 32.22% |
| Operating profit margin | 14.57% | -14.56% | -20.64% | -21.46% | -44.05% |
| Pretax margin | 21.71% | 22.53% | 16.55% | 15.61% | 15.60% |
| Net profit margin | 17.92% | 18.37% | 12.25% | 11.38% | 12.51% |
The Gross Profit Margin for GATX Corporation has shown an increasing trend from 32.22% in 2020 to 84.70% in 2024, indicating an improvement in the efficiency of the company's production and pricing strategies.
The Operating Profit Margin, while negative in 2020 and 2021 at -44.05% and -21.46% respectively, has gradually improved to 14.57% in 2024. This signifies that the company has been able to control its operating expenses more effectively over the years.
The Pretax Margin has been relatively stable over the years, ranging from 15.60% in 2020 to 22.53% in 2023. This indicates that the company has been able to generate consistent earnings before taxes relative to its revenue.
The Net Profit Margin, which measures the company's profitability after all expenses have been deducted, has also shown a positive trend, increasing from 12.51% in 2020 to 17.92% in 2024. This indicates that GATX Corporation has been able to effectively manage its costs and improve its bottom-line profitability over the years.
Overall, the profitability ratios suggest that GATX Corporation has been able to enhance its operational efficiency, control expenses, and improve its profitability margins over the period analyzed.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.88% | -1.81% | -2.61% | -2.83% | -5.96% |
| Return on assets (ROA) | 2.31% | 2.29% | 1.55% | 1.50% | 1.69% |
| Return on total capital | 28.09% | 25.57% | 20.93% | 19.82% | 19.36% |
| Return on equity (ROE) | 11.65% | 11.40% | 7.68% | 7.09% | 7.73% |
Based on the provided data for GATX Corporation, let's analyze its profitability ratios:
1. Operating Return on Assets (Operating ROA):
- GATX Corporation's Operating ROA has shown a declining trend from -5.96% in 2020 to -1.81% in 2023, with a slight improvement to 1.88% in 2024. This indicates that the company's operating income generated per dollar of assets was negative for the initial years but turned positive by 2024.
2. Return on Assets (ROA):
- The Return on Assets (ROA) for GATX Corporation has been relatively stable over the years, ranging from 1.50% to 2.31%. This ratio measures the overall profitability of the company's assets, showing a moderate increase from 2020 to 2024.
3. Return on Total Capital:
- GATX Corporation's Return on Total Capital has shown a consistent upward trend, increasing from 19.36% in 2020 to 28.09% in 2024. This indicates that the company has been effectively utilizing both debt and equity to generate higher returns for its capital providers.
4. Return on Equity (ROE):
- The Return on Equity (ROE) of GATX Corporation has also improved gradually from 7.09% in 2021 to 11.65% in 2024. This ratio highlights the profitability of the company for its shareholders' investment, showing an increasing trend over the years.
In summary, GATX Corporation has shown improvements in its profitability ratios, with a notable increase in Return on Total Capital and Return on Equity over the years. While Operating ROA initially struggled, it turned positive by 2024, indicating better operational efficiency. Overall, the company's profitability metrics demonstrate a positive trajectory, reflective of effective management and utilization of its assets and capital.