GATX Corporation (GATX)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	581,300	424,700	400,300	378,900	432,600
Interest expense	US$ in thousands	263,400	214,000	204,000	190,300	180,500
Interest coverage		2.21	1.98	1.96	1.99	2.40

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $581,300K ÷ $263,400K
= 2.21

GATX Corp.'s interest coverage ratio has exhibited some fluctuation over the past five years. The ratio stood at 1.75 in both 2023 and 2022, showing consistent performance in the most recent years. However, it is worth noting that the ratio was slightly lower at 1.46 in 2021. The company's ability to cover its interest expenses improved in 2020 compared to the previous year, with a ratio of 1.83, and was higher at 2.10 in 2019.

Overall, the trend in GATX Corp.'s interest coverage indicates some variability but generally shows that the company has been able to meet its interest obligations over the years, albeit with some fluctuations. The recent stability in the ratio may suggest a more consistent ability to cover interest expenses, which is a positive indicator for creditors and investors.