Landstar System Inc (LSTR)

Days of sales outstanding (DSO)

		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
Receivables turnover		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	6.94	7.14	7.51	7.65
DSO	days	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	52.59	51.13	48.60	47.70

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.13
= 51.19

The Days Sales Outstanding (DSO) is a measure of how many days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments from customers more quickly. Landstar System Inc's DSO has fluctuated over the past five years, with a general trend of improvement.

In the most recent period, as of December 31, 2023, Landstar System Inc's DSO stood at 51.19 days. This represents a slight decrease from the previous quarter, indicating that the company was able to collect payments from customers more efficiently.

Comparing the DSO figures over the last few years, there has been a gradual improvement in the collection period. For example, in December 2020, the DSO was at 67.49 days, significantly higher than the current figure. This trend suggests that Landstar System Inc has been more effective in managing its accounts receivable and getting paid faster.

Overall, the DSO trend for Landstar System Inc indicates that the company has been successful in improving its collection efficiency, which could positively impact its cash flow and working capital management. However, it is important to continue monitoring this metric to ensure that the company maintains its effective accounts receivable management practices.