Landstar System Inc (LSTR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	481,043	339,581	215,522	249,354	319,515
Short-term investments	US$ in thousands	59,661	53,955	35,778	41,375	32,901
Total current liabilities	US$ in thousands	675,224	878,135	1,009,980	806,137	552,904
Cash ratio		0.80	0.45	0.25	0.36	0.64

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($481,043K + $59,661K) ÷ $675,224K
= 0.80

The cash ratio of Landstar System Inc has fluctuated over the past five years, ranging from 0.25 in 2021 to 0.80 in 2023. This ratio measures the company's ability to cover its current liabilities using its cash and cash equivalents alone. A higher cash ratio indicates a stronger liquidity position, as more cash is available to meet short-term obligations without relying on other assets or external financing.

The steady improvement in Landstar System Inc's cash ratio from 2021 to 2023 suggests an enhanced liquidity position and potentially better financial health. However, the fluctuation in the ratio over the years may also indicate varying levels of cash management efficiency or shifts in the company's operating and financing activities. It is important to monitor this ratio along with other liquidity metrics to gain a comprehensive understanding of the company's ability to meet its short-term obligations.