GATX Corporation (GATX)

Financial leverage ratio

		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
Total assets	US$ in thousands	11,326,000	10,647,500	10,590,100	10,048,100	10,072,000	9,875,400	9,524,200	9,908,600	9,541,700	9,586,300	9,400,500	9,915,300	8,937,600	8,690,300	8,512,700	8,717,900	7,994,000	8,090,900	8,353,100	8,240,200
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
Financial leverage ratio		4.98	4.90	4.86	4.78	4.96	5.09	4.81	4.81	4.73	4.85	4.77	5.06	4.57	4.50	4.54	4.76	4.36	4.53	4.55	4.55

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 fluctuated over the past eight quarters, ranging from a low of 4.78 in Q1 2023 to a high of 5.09 in Q3 2022. The ratio indicates that for every dollar of equity, the company has incurred approximately $4.78 to $5.09 of debt.

Overall, the trend in the financial leverage ratio shows some variability, suggesting that GATX Corp has been actively managing its capital structure. A decreasing ratio can indicate a more conservative financial structure with less reliance on debt financing, while an increasing ratio may suggest a more aggressive approach towards leveraging for growth and investment opportunities.

It is essential for stakeholders to monitor the financial leverage ratio over time to assess the company's ability to meet its debt obligations and evaluate the level of risk associated with the company's capital structure.