Landstar System Inc (LSTR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 7.13 | 7.68 | 5.66 | 5.41 | 6.94 | |
| DSO | days | 51.19 | 47.50 | 64.45 | 67.49 | 52.59 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.13
= 51.19
Landstar System Inc's Days Sales Outstanding (DSO) has fluctuated over the past five years, ranging from a low of 47.50 days in 2022 to a high of 67.49 days in 2020. The DSO for the most recent year, 2023, stands at 51.19 days.
A lower DSO indicates that the company is collecting payments from its customers more quickly, which can be a positive indicator of efficient accounts receivable management. Conversely, a higher DSO may suggest delays in collecting payments and potential liquidity challenges.
Analyzing the trend over the five-year period, it is evident that Landstar System Inc has shown improvement in managing its accounts receivable as DSO decreased from 67.49 days in 2020 to 51.19 days in 2023. This reduction signifies an enhancement in the company's ability to convert sales into cash, which can positively impact its cash flow and overall financial health. It is important for the company to continue monitoring DSO and strive for further efficiency in accounts receivable management to maintain strong financial performance.
Peer comparison
Dec 31, 2023