Landstar System Inc (LSTR)

Working capital 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
Revenue (ttm) US$ in thousands 4,819,240 4,814,350 4,889,820 5,038,680 5,303,320 5,773,650 6,300,440 6,901,640 7,436,560 7,706,810 7,624,980 7,220,640 6,537,570 5,888,910 5,240,160 4,492,954 4,132,990 3,831,509 3,757,619 3,979,145
Total current assets US$ in thousands 1,319,870 1,311,390 1,315,180 1,310,370 1,352,740 1,395,540 1,373,690 1,353,890 1,439,390 1,484,850 1,505,270 1,538,500 1,522,900 1,412,130 1,233,270 1,137,320 1,208,180 964,069 840,352 816,156
Total current liabilities US$ in thousands 673,154 592,652 605,718 589,672 675,224 670,065 692,826 741,344 878,135 941,518 977,891 950,252 1,009,980 847,312 720,215 662,665 806,137 543,550 473,460 464,831
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,819,240K ÷ ($1,319,870K – $673,154K)
= 7.45

Landstar System Inc's working capital turnover has shown fluctuations over the years based on the provided data. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to June 30, 2020, the ratio decreased from 11.33 to 10.24, indicating a decrease in the efficiency of utilizing working capital to generate revenue. However, there was a slight improvement by December 31, 2020, where the ratio increased to 10.28 before dropping to 9.47 by March 31, 2021.

From June 30, 2021, to June 30, 2022, Landstar System Inc showed a consistent improvement in its working capital turnover, reaching a peak of 14.46. This significant increase points to the company effectively using its working capital to generate sales during this period.

However, the ratio started declining after June 30, 2022, reaching 6.70 by September 30, 2024. This downward trend could indicate potential issues in managing working capital efficiently or changes in the company's sales operations.

Overall, Landstar System Inc's working capital turnover ratio has displayed variability over the years, with periods of both improvement and decline. Analyzing this ratio over time can provide insights into how effectively the company is managing its working capital in relation to its revenue generation.