Landstar System Inc (LSTR)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	384,193	404,567	376,350	303,843	283,740
Payables	US$ in thousands	395,980	527,372	604,130	380,505	271,996
Payables turnover		0.97	0.77	0.62	0.80	1.04

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $384,193K ÷ $395,980K
= 0.97

Landstar System Inc's payables turnover has fluctuated over the past five years. The payables turnover ratio indicates how quickly the company is paying off its suppliers and trade payables. A higher payables turnover ratio suggests that the company is efficiently managing its payables by paying them off quickly.

In 2023, the payables turnover ratio improved to 0.97 from 0.77 in 2022, indicating that Landstar System Inc paid off its suppliers more efficiently during the year. This could be a positive sign of effective cash management or negotiating better payment terms with suppliers.

Comparing to 2021 and 2020, where the payables turnover ratio was at 0.62 and 0.80 respectively, the company has shown an improvement in managing its payables in 2023.

However, the payables turnover ratio in 2019 was higher at 1.04 compared to 2023, suggesting that Landstar System Inc was paying off its suppliers more quickly that year.

Overall, the trend in payables turnover for Landstar System Inc indicates variations in the company's ability to manage its payables efficiently over the past five years. Further analysis of the company's payment policies, supplier relationships, and operational performance would provide more insights into the factors driving these fluctuations.