GATX Corporation (GATX)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	317,900	210,700	196,300	188,600	252,100
Revenue	US$ in thousands	1,410,900	1,273,000	1,257,400	1,209,200	1,202,100
Pretax margin		22.53%	16.55%	15.61%	15.60%	20.97%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $317,900K ÷ $1,410,900K
= 22.53%

GATX Corp.'s pretax margin has shown fluctuating trends over the past five years. The company's pretax margin increased to 22.53% in 2023 from 16.55% in 2022, indicating improved profitability and effective cost management during that period. This growth marks a significant improvement compared to the previous year's marginal increase. In 2021, the pretax margin was slightly lower at 15.61%, showing stability in profitability despite a slight decrease from the prior year. The margins for 2020 and 2019 were also relatively consistent at 15.51% and 18.63%, respectively.

Overall, the upward trend in GATX Corp.'s pretax margin from 2022 to 2023 suggests the company's effectiveness in generating profits before accounting for tax expenses. This progress reflects positive financial performance and may indicate improved operational efficiency within the organization. However, it is essential to continue monitoring the pretax margin in the coming years to assess the company's ongoing financial health and sustainability.