Landstar System Inc (LSTR)

Payables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	388,375	384,097	381,950	384,613	384,193	391,016	395,688	403,741	404,567	409,991	411,500	394,574	376,350	346,157	317,048	301,068	303,843	302,866	303,736	297,952
Payables	US$ in thousands	383,625	397,908	401,535	384,267	395,980	464,720	478,688	490,304	527,372	644,054	670,534	626,337	604,130	548,385	481,711	414,440	380,505	339,798	273,324	272,175
Payables turnover		1.01	0.97	0.95	1.00	0.97	0.84	0.83	0.82	0.77	0.64	0.61	0.63	0.62	0.63	0.66	0.73	0.80	0.89	1.11	1.09

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $388,375K ÷ $383,625K
= 1.01

Landstar System Inc's payables turnover ratio has shown fluctuations over the past few years. The ratio, which measures the efficiency of the company in paying its suppliers, has generally been on a decreasing trend since March 2021. A decreasing payables turnover ratio may indicate that the company is taking longer to pay its suppliers, which could potentially strain relationships with creditors.

It is worth noting that the payables turnover ratio for Landstar System Inc was highest at around 1.11 in June 2020 and has since declined to around 1.01 by December 2024. This downward trend may raise concerns about the company's ability to manage its accounts payable effectively.

Overall, a decreasing payables turnover ratio for Landstar System Inc suggests that the company may be facing challenges in managing its supplier payments efficiently. Investors and stakeholders may want to monitor this ratio closely to assess the company's financial health and vendor management practices.