Landstar System Inc (LSTR)

Number of days of payables

		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
Payables turnover		3.86	3.31	3.22	3.16	0.77	0.64	0.61	0.63	0.62	0.63	0.66	0.73	0.80	0.89	1.11	1.09	1.04	1.00	1.01	1.10
Number of days of payables	days	94.47	110.38	113.35	115.50	475.79	573.38	594.76	579.39	585.91	578.24	554.57	502.45	457.09	409.51	328.45	333.42	349.89	365.20	360.99	330.80

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 3.86
= 94.47

Landstar System Inc's number of days of payables has shown significant variation over the past few years. The number of days of payables is calculated by dividing the average accounts payable by average daily cost of goods sold and then multiplying it by 365.

From the data provided, we can see that Landstar System Inc's number of days of payables has ranged from as low as 94.47 days to as high as 594.76 days in recent quarters. This wide range indicates fluctuations in the company's ability to pay its suppliers in a timely manner.

In particular, the company experienced an alarming increase in the number of days of payables from 2019 to 2022, peaking at 594.76 days in June 2022. This extended period suggests a potential strain on the company's liquidity and cash flow management during that time.

However, there seems to be an improvement in the trend in the most recent quarters, with the number of days of payables gradually decreasing to 94.47 days at the end of December 2023. This reduction may indicate better control over the company's payables and improved working capital management.

In conclusion, Landstar System Inc's number of days of payables has shown significant variability, reflecting fluctuations in the company's financial management practices. It will be important for stakeholders to monitor this ratio going forward to ensure continued improvement in the company's ability to manage its payables effectively.