Landstar System Inc (LSTR)

Days of sales outstanding (DSO)

		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
Receivables turnover		7.05	6.93	6.75	6.96	7.13	7.12	7.42	7.67	7.68	6.80	6.27	5.90	5.66	5.83	5.80	5.45	5.41	6.01	7.68	7.07
DSO	days	51.79	52.66	54.08	52.43	51.19	51.26	49.18	47.59	47.50	53.69	58.23	61.83	64.45	62.63	62.89	67.01	67.49	60.77	47.52	51.60

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.05
= 51.79

The days of sales outstanding (DSO) ratio for Landstar System Inc has shown some fluctuations over the past few years, indicating the average number of days it takes for the company to collect payment from its customers after making a sale.

From March 31, 2020, to December 31, 2024, the DSO has ranged from a low of 47.50 days to a high of 67.49 days. The trend in the recent quarters shows a decreasing pattern from the high of 67.49 days on December 31, 2020, to 51.79 days on December 31, 2024. This indicates an improvement in the efficiency of the company's account receivables management.

A lower DSO value generally implies that Landstar System Inc is collecting payments from its customers more quickly, which can positively impact the company's cash flow and working capital management. However, a significant decrease in DSO should also be interpreted cautiously as it could potentially signify overly aggressive collection practices that may alienate customers.

Overall, monitoring the DSO ratio over time provides insights into the company's credit and collection policies, operational efficiency, and liquidity position. A consistent and optimal DSO level is essential for maintaining a healthy financial position for Landstar System Inc.