GATX Corporation (GATX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.04 | 5.08 | 5.22 | 4.98 | 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 |
GATX Corporation consistently maintains a strong solvency position as evidenced by its debt-related ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the reported periods, indicating that the company's total debt is either extremely low or non-existent in relation to its assets, capital, and equity.
The Financial Leverage Ratio, which measures the company's leverage or the extent to which it relies on debt financing, shows a relatively steady trend over the years. While there was a slight increase observed in the ratio in some quarters, it generally ranged between 4.50 and 5.22. This suggests that GATX Corporation has been able to maintain a balanced capital structure without excessively relying on debt to fund its operations.
Overall, the solvency ratios reflect GATX Corporation's conservative approach to managing its financial obligations and maintaining a healthy balance sheet position. The company's ability to operate with minimal debt burden signifies a sound financial footing and a prudent financial strategy.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.38 | 1.01 | 1.95 | 2.11 | 2.21 | 2.25 | 2.22 | 1.95 | 1.98 | 2.08 | 2.16 | 2.24 | 1.96 | 1.71 | 1.74 | 1.88 | 1.99 | 2.23 | 2.23 | 2.45 |
The interest coverage ratio of GATX Corporation has displayed some fluctuations over the years based on the provided data. The ratio indicates the company's ability to meet its interest obligations from its operating income.
From March 31, 2020, to June 30, 2021, the interest coverage ratio gradually decreased from 2.45 to 1.74, suggesting a potential weakening in the company's ability to cover its interest expenses. However, there was a slight increase in the ratio by December 31, 2021, before dropping again by March 31, 2022.
Subsequently, the interest coverage ratio improved from June 30, 2022, reaching a peak of 2.38 by December 31, 2024. This signals a positive trend in the company's ability to cover its interest payments, indicating a healthier financial position and reduced risk of default.
However, the decrease in the interest coverage ratio to 1.01 by September 30, 2024, is a point of concern as it suggests a significant decline in the company's ability to meet its interest obligations from its operating income. Further scrutiny and analysis may be required to understand the factors behind this downturn and assess the overall financial health of GATX Corporation.