GATX Corporation (GATX)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	434,100	397,600	401,000	364,300
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	1,835,100	1,786,500	1,834,800	1,809,200
Return on total capital		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%	23.66%	22.26%	21.86%	20.14%

December 31, 2023 calculation

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

To analyze GATX Corp.'s return on total capital, I calculated the average return on total capital over the past eight quarters. The average return on total capital for GATX Corp. during this period is 4.44%.

GATX Corp.'s return on total capital has been relatively stable over the period, ranging from 3.58% in Q1 2022 to 4.95% in Q3 2023. This indicates that the company has been able to generate a consistent return on its total capital investments.

A return on total capital of 4.44% suggests that GATX Corp. is effectively utilizing its total capital to generate profits for its shareholders. However, it is important to compare this figure with industry benchmarks and peer companies to assess GATX Corp.'s performance relative to its competitors.

Overall, GATX Corp.'s return on total capital indicates that the company is effectively managing its capital resources to generate returns for its investors. Further analysis of the company's financial statements and performance metrics would provide a more comprehensive understanding of its financial health and success in utilizing its capital efficiently.