GATX Current Ratio vs. Working Capital
| GATX Stock | USD 128.04 1.13 0.89% |
Current Ratio | First Reported 2010-12-31 | Previous Quarter 0.81979664 | Current Value 0.78 | Quarterly Volatility 1.13041031 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.4588 |
|
|
For GATX profitability analysis, we use financial ratios and fundamental drivers that measure the ability of GATX to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well GATX Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between GATX's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of GATX Corporation over time as well as its relative position and ranking within its peers.
GATX |
Is GATX's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GATX. If investors know GATX will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GATX listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.331 | Dividend Share 2.2 | Earnings Share 7.12 | Revenue Per Share 39.521 | Quarterly Revenue Growth 0.143 |
The market value of GATX is measured differently than its book value, which is the value of GATX that is recorded on the company's balance sheet. Investors also form their own opinion of GATX's value that differs from its market value or its book value, called intrinsic value, which is GATX's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GATX's market value can be influenced by many factors that don't directly affect GATX's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GATX's value and its price as these two are different measures arrived at by different means. Investors typically determine if GATX is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GATX's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
GATX Working Capital vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining GATX's current stock value. Our valuation model uses many indicators to compare GATX value to that of its competitors to determine the firm's financial worth. GATX Corporation is one of the top stocks in current ratio category among related companies. It is one of the top stocks in working capital category among related companies reporting about 131,188,630 of Working Capital per Current Ratio. At this time, GATX's Current Ratio is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value GATX by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for GATX's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the GATX's earnings, one of the primary drivers of an investment's value.GATX Working Capital vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
GATX |
| = | 3.87 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
GATX |
| = | 507.7 M |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
GATX Working Capital Comparison
GATX is currently under evaluation in working capital category among related companies.
GATX Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in GATX, profitability is also one of the essential criteria for including it into their portfolios because, without profit, GATX will eventually generate negative long term returns. The profitability progress is the general direction of GATX's change in net profit over the period of time. It can combine multiple indicators of GATX, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -167.6 M | -176 M | |
| Operating Income | 1.1 B | 1.2 B | |
| Income Before Tax | 245.5 M | 147 M | |
| Total Other Income Expense Net | -870.1 M | -826.6 M | |
| Net Income | 259.2 M | 143.3 M | |
| Income Tax Expense | -13.7 M | -13 M | |
| Net Income Applicable To Common Shares | 179.3 M | 172.8 M | |
| Net Income From Continuing Ops | 241.6 M | 196.7 M | |
| Non Operating Income Net Other | 98.8 M | 106.9 M | |
| Interest Income | 216.5 M | 181.2 M | |
| Net Interest Income | -248.1 M | -260.5 M | |
| Change To Netincome | 4 M | 4.3 M | |
| Net Income Per Share | 7.26 | 7.62 | |
| Income Quality | 2.01 | 2.11 | |
| Net Income Per E B T | 1.06 | 1.71 |
GATX Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on GATX. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of GATX position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the GATX's important profitability drivers and their relationship over time.
Use GATX in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GATX position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GATX will appreciate offsetting losses from the drop in the long position's value.GATX Pair Trading
GATX Corporation Pair Trading Analysis
The ability to find closely correlated positions to GATX could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GATX when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GATX - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GATX Corporation to buy it.
The correlation of GATX is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GATX moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GATX moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GATX can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your GATX position
In addition to having GATX in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Office Supplies Thematic Idea Now
Office Supplies
Companies producing and selling office supplies, and accessories. The Office Supplies theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Office Supplies Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Risk vs Return Analysis. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary Tools for GATX Stock analysis
When running GATX's price analysis, check to measure GATX's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GATX is operating at the current time. Most of GATX's value examination focuses on studying past and present price action to predict the probability of GATX's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GATX's price. Additionally, you may evaluate how the addition of GATX to your portfolios can decrease your overall portfolio volatility.
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |
To fully project GATX's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of GATX at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include GATX's income statement, its balance sheet, and the statement of cash flows.