GATX Corporation (GATX)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	259,200	155,900	143,100	151,300	211,200
Revenue	US$ in thousands	1,410,900	1,273,000	1,257,400	1,209,200	1,202,100
Net profit margin		18.37%	12.25%	11.38%	12.51%	17.57%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $259,200K ÷ $1,410,900K
= 18.37%

The net profit margin of GATX Corp. has fluctuated over the past five years. In 2023, the net profit margin improved to 18.37%, a significant increase from the previous year's 12.25%. This suggests that the company was able to generate a higher proportion of net income relative to its revenue in 2023. However, it is important to note that in 2022, the net profit margin was lower at 12.25%, which was down from the prior year at 11.38%. The trend shows some inconsistency in the company's ability to efficiently convert revenue into profit during these years.

Comparing the net profit margin of 2023 to earlier years, it was still lower than the levels seen in 2019 and 2020, which were 15.15% and 12.51%, respectively. This indicates that GATX Corp. had stronger profitability in those years compared to 2023. Overall, while the company has shown improvements in net profit margin from 2022 to 2023, its performance in 2023 did not match the levels achieved in the two previous years.

Further analysis into the company's operating expenses, revenue growth, and cost management strategies may provide additional insights into the factors influencing the fluctuating net profit margin of GATX Corp.