GATX Corporation (GATX)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,273,000K
= 0.00
The debt-to-equity ratio of GATX Corp. has been increasing over the past five years, indicating a growing reliance on debt financing relative to equity. The ratio has shown a consistent upward trend from 2.62 in 2019 to 3.26 in 2023. This suggests that the company's level of debt compared to its equity has been on the rise, potentially exposing it to higher financial risk and increasing the company's leverage.
A high debt-to-equity ratio may indicate that GATX Corp. is heavily leveraging its operations, which can lead to higher interest expenses and financial instability, especially in times of economic downturns or rising interest rates. It also implies that a significant portion of the company's assets are financed through debt rather than shareholder equity.
Investors and creditors closely monitor the debt-to-equity ratio as it provides insights into the company's financial leverage and ability to meet its debt obligations. The trend of increasing debt-to-equity ratio for GATX Corp. highlights the importance of monitoring its debt management strategies and overall financial health to ensure sustainable growth and profitability in the long run.
Peer comparison
Dec 31, 2023