Landstar System Inc (LSTR)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	4,084,579	4,272,050	4,462,470	4,600,220
Total current assets	US$ in thousands	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	997,888	970,750	939,303	944,195
Total current liabilities	US$ in thousands	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	552,904	483,756	474,250	473,244
Working capital turnover		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	9.18	8.77	9.60	9.77

December 31, 2023 calculation

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

The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. Landstar System Inc's working capital turnover ratio has shown fluctuations over the past few quarters.

The ratio has been on a declining trend since the high of 14.46 in the second quarter of 2022, reaching a low of 7.83 in the most recent quarter ending December 31, 2023. This indicates that Landstar System Inc is generating less revenue relative to its working capital in the latest period compared to the past quarters.

Overall, the general trend indicates that Landstar System Inc's efficiency in utilizing its working capital to generate sales revenue has decreased over the quarters, suggesting potential inefficiencies in managing and deploying its working capital resources effectively. Further analysis and investigation into the company's working capital management practices may be warranted to address these fluctuations and improve operational efficiency.