Landstar System Inc (LSTR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,819,240 | 5,303,320 | 7,436,560 | 6,537,570 | 4,132,980 |
| Property, plant and equipment | US$ in thousands | 311,345 | 284,300 | 314,990 | 317,386 | 296,996 |
| Fixed asset turnover | 15.48 | 18.65 | 23.61 | 20.60 | 13.92 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,819,240K ÷ $311,345K
= 15.48
Fixed asset turnover is a crucial financial ratio that measures a company's ability to generate revenues from its investment in fixed assets. Looking at Landstar System Inc's fixed asset turnover over the past five years, we observe a consistent trend of improvement.
As of December 31, 2020, Landstar System Inc's fixed asset turnover was 13.92, indicating that the company generated $13.92 in revenue for every dollar invested in fixed assets. This ratio increased to 20.60 by December 31, 2021, demonstrating a significant improvement in efficiency in utilizing fixed assets to generate sales.
The trend continued to strengthen in the following years, with fixed asset turnover reaching 23.61 by December 31, 2022, reflecting a notable increase in revenue generated per unit of fixed asset investment. However, there was a slight dip in the ratio to 18.65 by December 31, 2023, indicating a potential decrease in efficiency in utilizing fixed assets.
By December 31, 2024, Landstar System Inc's fixed asset turnover stabilized at 15.48, still showing a respectable level of efficiency in generating sales relative to fixed asset investments. Overall, the company has shown a positive trend in improving its fixed asset turnover over the years, underscoring its effective management of fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024