GATX Corporation (GATX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,273,000K)
= 0.00
The debt-to-capital ratio of GATX Corp. has been gradually increasing over the past five years, indicating a trend of higher reliance on debt financing compared to capital from equity sources. This ratio stood at 0.72 at the end of 2019 and has since increased to 0.76 by the end of 2023.
A debt-to-capital ratio of 0.76 means that 76% of GATX Corp.'s capital structure is comprised of debt, while the remaining 24% comes from equity. This suggests that the company has a relatively high level of debt relative to its total capital. It is essential for investors and creditors to monitor this ratio to assess the company's financial stability and leverage risk.
Overall, the consistent increase in the debt-to-capital ratio implies that GATX Corp. has been relying more on debt to fund its operations and growth initiatives. This trend may indicate a higher financial risk level for the company, as an increase in debt can lead to higher interest expenses and potential challenges in debt repayment, especially during economic downturns or unfavorable market conditions.
Peer comparison
Dec 31, 2023