GATX Corporation (GATX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	11,326,000	10,072,000	9,541,700	8,937,600	7,994,000
Total stockholders’ equity	US$ in thousands	2,273,000	2,029,600	2,019,200	1,957,400	1,835,100
Financial leverage ratio		4.98	4.96	4.73	4.57	4.36

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,326,000K ÷ $2,273,000K
= 4.98

The financial leverage ratio of GATX Corp. has shown a consistent upward trend over the past five years, increasing from 4.51 in 2019 to 4.98 in 2023. This indicates that the company has been relying more on debt financing relative to equity financing over this period. A high financial leverage ratio typically suggests higher financial risk as the company has a larger proportion of debt in its capital structure compared to equity. It is important for investors and analysts to closely monitor this trend and assess the company's ability to service its debt obligations effectively, especially in challenging economic conditions.