GATX Corporation (GATX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,296,500 | 11,326,000 | 10,072,000 | 9,541,700 | 8,937,600 |
| Total stockholders’ equity | US$ in thousands | 2,438,900 | 2,273,000 | 2,029,600 | 2,019,200 | 1,957,400 |
| Financial leverage ratio | 5.04 | 4.98 | 4.96 | 4.73 | 4.57 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,296,500K ÷ $2,438,900K
= 5.04
The financial leverage ratio of GATX Corporation has been gradually increasing over the past five years, from 4.57 as of December 31, 2020, to 5.04 as of December 31, 2024. This indicates that the company is relying more on debt to finance its operations and investments. A higher financial leverage ratio implies higher financial risk as the company has more debt relative to its equity. Investors and creditors may view this trend as a potential concern, as it could increase the company's vulnerability to adverse events or economic downturns. GATX Corporation may need to carefully manage its debt levels and financial structure to ensure long-term financial stability and sustainability.
Peer comparison
Dec 31, 2024