Landstar System Inc (LSTR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,303,320	7,436,560	6,537,570	4,132,980	4,084,580
Property, plant and equipment	US$ in thousands	284,300	314,990	317,386	296,996	285,855
Fixed asset turnover		18.65	23.61	20.60	13.92	14.29

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,303,320K ÷ $284,300K
= 18.65

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. A higher fixed asset turnover indicates that the company is generating more sales relative to its investment in fixed assets.

Analyzing Landstar System Inc's fixed asset turnover over the past five years, we observe some fluctuations in the ratio. In 2023, the fixed asset turnover was 18.65, showing a decrease from 23.61 in 2022 and 20.60 in 2021. This decline may suggest that the company is becoming less efficient in utilizing its fixed assets to generate revenue.

However, it is important to note that Landstar System Inc's fixed asset turnover in 2023 is still relatively high compared to previous years, indicating that the company is still efficient in generating sales from its fixed assets. It is essential for the company to continue monitoring and managing its fixed asset turnover to ensure optimal utilization of resources for revenue generation.