Landstar System Inc (LSTR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 7.05 | 6.93 | 6.75 | 6.96 | 7.13 | 7.12 | 7.42 | 7.67 | 7.68 | 6.80 | 6.27 | 5.90 | 5.66 | 5.83 | 5.80 | 5.45 | 5.41 | 6.01 | 7.68 | 7.07 |
| 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 |
| Working capital turnover | 7.45 | 6.70 | 6.89 | 6.99 | 7.83 | 7.96 | 9.25 | 11.27 | 13.25 | 14.18 | 14.46 | 12.27 | 12.75 | 10.43 | 10.21 | 9.47 | 10.28 | 9.11 | 10.24 | 11.33 |
Based on the provided data, we can analyze the activity ratios of Landstar System Inc as follows:
1. Inventory Turnover: Unfortunately, there is no data available for inventory turnover, which means we are unable to evaluate how efficiently Landstar System Inc is managing its inventory levels.
2. Receivables Turnover: The receivables turnover ratio indicates how quickly the company is collecting its outstanding receivables. The trend shows a gradual increase in receivables turnover from 5.41 in December 2020 to 7.05 in December 2024. This suggests that Landstar System Inc has been improving its efficiency in collecting payments from its customers over the years.
3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. The trend in payables turnover for Landstar System Inc shows slight fluctuations but generally remains steady over the years, ranging from 0.62 in December 2021 to 1.01 in December 2024. This indicates that the company is maintaining a consistent payment relationship with its suppliers.
4. Working Capital Turnover: This ratio indicates how effectively the company is utilizing its working capital to generate revenue. The trend in working capital turnover for Landstar System Inc fluctuates significantly, with a peak of 14.46 in June 2022 and a low of 6.70 in September 2024. The decrease in the ratio towards the end of the period may suggest a declining efficiency in utilizing working capital for revenue generation.
In conclusion, Landstar System Inc has shown improvement in its receivables turnover and has maintained a relatively stable payables turnover. However, the lack of data on inventory turnover and the fluctuating trend in working capital turnover raise some concerns about the company's inventory management efficiency and working capital utilization efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 51.79 | 52.66 | 54.08 | 52.43 | 51.19 | 51.26 | 49.18 | 47.59 | 47.50 | 53.69 | 58.23 | 61.83 | 64.45 | 62.63 | 62.89 | 67.01 | 67.49 | 60.77 | 47.52 | 51.60 |
| Number of days of payables | days | 360.54 | 378.12 | 383.72 | 364.67 | 376.20 | 433.80 | 441.56 | 443.26 | 475.79 | 573.38 | 594.76 | 579.39 | 585.91 | 578.24 | 554.57 | 502.45 | 457.09 | 409.51 | 328.45 | 333.42 |
Based on the provided data, Landstar System Inc's activity ratios can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- The data for days of inventory on hand is not available for the provided periods. This ratio indicates how efficiently the company manages its inventory and how quickly it is able to convert inventory into sales. Without specific numbers, it is challenging to assess Landstar System Inc's inventory turnover efficiency.
2. Days of Sales Outstanding (DSO):
- Landstar System Inc's days of sales outstanding have been showing a decreasing trend over the periods from March 31, 2020, to December 31, 2024. This indicates that the company is improving its efficiency in collecting accounts receivable from customers. A lower DSO means that the company is collecting sales revenue faster, which is a positive sign for cash flow generation.
3. Number of Days of Payables:
- The number of days of payables for Landstar System Inc has fluctuated over the periods but generally showed a decreasing trend. A decrease in days of payables suggests that the company is taking less time to pay its suppliers, which may indicate improved relationships with suppliers or better cash flow management.
In summary, while the data for days of inventory on hand is not available, Landstar System Inc has shown improvements in managing its accounts receivable and payables, as seen in the decreasing trend of days of sales outstanding and days of payables over the periods analyzed. These trends suggest potential enhancements in working capital management and cash flow efficiency for the company.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 15.48 | 16.64 | 17.10 | 18.02 | 18.65 | 20.32 | 21.21 | 22.54 | 23.61 | 23.97 | 24.27 | 23.52 | 20.60 | 19.54 | 18.65 | 15.60 | 13.92 | 13.71 | 13.19 | 14.38 |
| Total asset turnover | 2.66 | 2.74 | 2.79 | 2.89 | 2.94 | 3.12 | 3.43 | 3.76 | 3.85 | 3.88 | 3.78 | 3.53 | 3.20 | 3.08 | 3.08 | 2.85 | 2.50 | 2.75 | 2.95 | 3.22 |
Landstar System Inc's Fixed Asset Turnover ratio shows a fluctuating trend over the years, with an increasing pattern from March 31, 2020, to June 30, 2022. The ratio peaked at 24.27 on June 30, 2022, indicating that the company generated $24.27 in revenue for every dollar invested in fixed assets. However, there was a slight decline in the ratio by December 31, 2024, to 15.48.
In contrast, the Total Asset Turnover ratio demonstrates a generally decreasing trend during the same period. The ratio decreased from 3.22 on March 31, 2020, to 2.66 on December 31, 2024. This suggests that Landstar System Inc generated $2.66 in revenue for every dollar of total assets by the end of 2024, reflecting a possible inefficiency in utilizing its total assets to generate sales.
Overall, while the Fixed Asset Turnover ratio has shown some improvement in efficiency in utilizing fixed assets, the declining trend in the Total Asset Turnover ratio indicates a potential need for the company to enhance its overall asset utilization to drive revenue growth.