Landstar System Inc (LSTR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,303,320 | 7,436,560 | 6,537,570 | 4,132,980 | 4,084,580 |
| Receivables | US$ in thousands | 743,762 | 967,793 | 1,154,310 | 764,169 | 588,549 |
| Receivables turnover | 7.13 | 7.68 | 5.66 | 5.41 | 6.94 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,303,320K ÷ $743,762K
= 7.13
The receivables turnover ratio for Landstar System Inc has shown some fluctuations over the past five years. In 2023, the ratio was 7.13, indicating that the company collected its accounts receivables approximately 7.13 times during the year. This was a slight decrease from the previous year's ratio of 7.68.
The trend over the past five years shows variability in the company's ability to collect its receivables efficiently. In 2021 and 2020, the ratios were 5.66 and 5.41 respectively, suggesting a slightly lower collection efficiency during those years. However, in 2019, the ratio was higher at 6.94, indicating better receivables turnover.
Overall, a higher receivables turnover ratio is generally preferred as it signifies that the company is collecting its outstanding receivables more frequently, which can improve cash flow and reduce the risk of bad debts. Landstar System Inc may want to focus on improving its collections process to maintain a more consistent and efficient receivables turnover ratio in the future.
Peer comparison
Dec 31, 2023