Landstar System Inc (LSTR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	481,043	439,661	360,528	340,987	339,581	177,796	78,220	146,025	215,522	230,564	186,404	219,389	249,354	218,554	245,471	177,224	319,515	284,434	250,212	264,625
Short-term investments	US$ in thousands	59,661	57,099	58,574	47,168	53,955	50,637	41,549	35,679	35,778	36,644	52,560	41,407	41,375	39,068	36,274	33,627	32,901	31,596	35,138	39,958
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
Cash ratio		0.80	0.74	0.60	0.52	0.45	0.24	0.12	0.19	0.25	0.32	0.33	0.39	0.36	0.47	0.60	0.45	0.64	0.65	0.60	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 shown fluctuations over the periods analyzed. The cash ratio measures a company's ability to pay off its current liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations without relying on other sources of liquidity.

Looking at the trend for Landstar System Inc, the cash ratio has generally been increasing over the past five quarters, from 0.45 in December 2022 to 0.80 in December 2023. This indicates an improvement in the company's liquidity position over time. However, it is important to note that the ratio experienced some volatility during this period, with fluctuations observed in the quarterly figures.

The increase in the cash ratio suggests that Landstar System Inc has been building up its cash reserves relative to its current liabilities. This could be a prudent financial strategy to ensure the company has enough liquid assets to meet its short-term obligations, cover unexpected expenses, or take advantage of investment opportunities as they arise.

Overall, the upward trend in the cash ratio reflects positively on the liquidity position of Landstar System Inc, indicating that the company has been managing its cash resources effectively to support its short-term financial needs. However, it is essential for investors and stakeholders to monitor this ratio alongside other financial metrics to gain a comprehensive understanding of the company's financial health and performance.