Landstar System Inc (LSTR)

Working capital 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
Total current assets	US$ in thousands	1,352,740	1,439,390	1,522,900	1,208,180	997,888
Total current liabilities	US$ in thousands	675,224	878,135	1,009,980	806,137	552,904
Working capital turnover		7.83	13.25	12.75	10.28	9.18

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,303,320K ÷ ($1,352,740K – $675,224K)
= 7.83

The working capital turnover ratio for Landstar System Inc has fluctuated over the past five years. In 2023, the ratio stands at 7.83 times, indicating that the company generated $7.83 in revenue for each dollar of working capital invested during the period. This represents a decrease from the previous year's ratio of 13.25, suggesting a less efficient use of working capital. However, when compared to 2021 and 2020, Landstar System Inc still exhibited a higher working capital turnover in 2023.

It is important to note that a working capital turnover ratio above 1 indicates efficient utilization of working capital in generating sales. Landstar System Inc's ratio above 1 for all years in the data set signifies effective management of its working capital to support revenue generation. The company's ability to maintain a relatively stable working capital turnover ratio over the years reflects its efficiency in managing its current assets and liabilities to drive sales growth.