GATX Corporation (GATX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 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 |
The solvency ratios of GATX Corp. show the company's ability to meet its long-term financial obligations and the extent of its leverage.
1. Debt-to-assets ratio: This ratio has been relatively stable around 0.64 to 0.65 over the past eight quarters, indicating that 64-65% of GATX Corp.'s assets are financed by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio has also remained quite stable, ranging from 0.75 to 0.77. This suggests that 75-77% of the company's capital structure is composed of debt.
3. Debt-to-equity ratio: The debt-to-equity ratio fluctuates between 3.02 to 3.28. This signifies that GATX Corp. has between 3.02 to 3.28 times more debt relative to equity.
4. Financial leverage ratio: The financial leverage ratio has ranged from 4.78 to 5.09 over the periods analyzed. This ratio indicates that, on average, GATX Corp. is using leverage to amplify returns, with a leverage factor ranging between 4.78 and 5.09 times.
Overall, the solvency ratios of GATX Corp. suggest that the company has maintained a relatively stable level of leverage over the past eight quarters, with a significant portion of its assets and capital being financed by debt. Investors and creditors may view these ratios to assess the company's long-term financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 2.39 | 2.27 | 2.32 | 2.15 |
The interest coverage ratio of GATX Corp., a measure of the company's ability to meet its interest payments on outstanding debt, has shown relatively consistent performance over the past eight quarters. The ratio has ranged from 1.48 to 1.85 during this period, indicating that the company has typically earned enough operating income to cover its interest expenses.
The highest interest coverage ratio was observed in Q1 2023 at 1.85, showing a strong ability to meet interest payments. Conversely, the lowest ratio was recorded in Q1 2022 at 1.48, suggesting slightly weaker coverage during that period.
Overall, the interest coverage ratios for GATX Corp. have generally remained above 1.5, a commonly accepted benchmark for adequate interest coverage. This indicates that the company has been able to comfortably manage its interest obligations and suggests a lower default risk based on this particular ratio. Further analysis of other financial metrics and market conditions would provide a more comprehensive assessment of the company's overall financial health.