Landstar System Inc (LSTR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	515,018	468,830	438,062	467,671	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
Short-term investments	US$ in thousands	51,619	62,451	65,959	62,781	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
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
Cash ratio		0.84	0.90	0.83	0.90	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($515,018K + $51,619K) ÷ $673,154K
= 0.84

The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, for Landstar System Inc has shown fluctuations over the reporting periods.

The ratio declined from 0.45 as of March 31, 2020, to 0.12 as of June 30, 2022, indicating a decrease in the company's ability to cover its short-term liabilities with its available cash. This decline may suggest that Landstar System Inc was using its cash for other purposes or experiencing challenges in maintaining sufficient liquid assets.

However, the cash ratio showed a significant increase from 0.12 as of June 30, 2022, to 0.90 as of December 31, 2024. This substantial improvement indicates a positive shift in Landstar System Inc's ability to cover its short-term obligations with cash on hand, potentially reflecting a stronger financial position and liquidity management.

Overall, closely monitoring the cash ratio of Landstar System Inc can provide insights into the company's short-term liquidity position and its ability to meet its financial obligations as they come due.