GATX Corporation (GATX)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 809,900 324,600 588,400 595,400 581,300 558,000 519,300 431,900 424,700 431,400 439,300 451,200 400,300 346,200 350,200 372,500 378,900 416,200 407,200 442,600
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 2,438,900 2,436,700 2,343,400 2,324,300 2,273,000 2,174,500 2,178,900 2,101,500 2,029,600 1,940,500 1,981,500 2,060,800 2,019,200 1,976,900 1,971,400 1,960,000 1,957,400 1,930,000 1,875,300 1,831,000
Return on total capital 33.21% 13.32% 25.11% 25.62% 25.57% 25.66% 23.83% 20.55% 20.93% 22.23% 22.17% 21.89% 19.82% 17.51% 17.76% 19.01% 19.36% 21.56% 21.71% 24.17%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $809,900K ÷ ($—K + $2,438,900K)
= 33.21%

Over the period from March 2020 to December 2024, GATX Corporation's return on total capital has fluctuated. The highest return on total capital was recorded at 33.21% at the end of December 2024, indicating a strong performance in generating profits in relation to the total capital employed.

There was a noticeable decline in the return on total capital in the third quarter of 2024, dropping to 13.32%, which could be a sign of potential challenges or inefficiencies in capital utilization during that period.

Overall, GATX Corporation has demonstrated varying levels of efficiency in utilizing its total capital to generate returns during the analyzed period. Investors and analysts may want to further investigate the factors influencing these fluctuations to gain a more comprehensive understanding of the company's financial performance and strategic decisions.