Landstar System Inc (LSTR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 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 | 52.59 | 51.13 | 48.60 | 47.70 |
| Number of days of payables | days | 94.47 | 110.38 | 113.35 | 115.50 | 475.79 | 573.38 | 594.76 | 579.39 | 585.91 | 578.24 | 554.57 | 502.45 | 457.09 | 409.51 | 328.45 | 333.42 | 349.89 | 365.20 | 360.99 | 330.80 |
| Cash conversion cycle | days | -43.28 | -59.12 | -64.17 | -67.91 | -428.29 | -519.69 | -536.53 | -517.56 | -521.46 | -515.60 | -491.67 | -435.44 | -389.61 | -348.74 | -280.94 | -281.82 | -297.30 | -314.08 | -312.40 | -283.10 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 51.19 – 94.47
= -43.28
The cash conversion cycle of Landstar System Inc has shown significant improvement from previous periods. The company has been able to effectively manage its receivables, inventory, and payables to reduce the time it takes to convert its resources into cash.
The cash conversion cycle decreased from -283.10 days in March 2019 to -43.28 days in December 2023, indicating that the company has been able to streamline its operations and improve its cash flow efficiency over time.
In the latest period, the company's cash conversion cycle was negative, indicating that Landstar System Inc is able to generate cash from its operations before paying its suppliers. This may be attributed to strong cash collection practices, efficient inventory management, and favorable payment terms with suppliers.
Overall, the trend in Landstar System Inc's cash conversion cycle reflects its ability to efficiently manage its working capital and indicates a healthy liquidity position. However, it is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure sustainability and long-term financial health.
Peer comparison
Dec 31, 2023