GATX Corporation (GATX)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	581,300	424,700	400,300	378,900	432,600
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	2,273,000	2,029,600	2,019,200	1,957,400	1,835,100
Return on total capital		25.57%	20.93%	19.82%	19.36%	23.57%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $581,300K ÷ ($—K + $2,273,000K)
= 25.57%

The return on total capital for GATX Corp. has shown a fluctuating trend over the past five years. The ratio peaked at 5.90% in 2019, then decreased to 4.75% in 2020, before experiencing a slight improvement to 4.76% in 2023. The recent performance in 2023 indicates a moderate increase compared to the previous year, reflecting a positive return on the company's total capital utilization. However, it is important to note that the ratio remains below the levels seen in 2019, suggesting potential room for improvement in capital efficiency. Continued monitoring and analysis of GATX Corp.'s return on total capital will be essential to assess its effectiveness in generating returns for its investors and stakeholders.