Landstar System Inc (LSTR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.96 | 2.21 | 2.17 | 2.22 | 2.00 | 2.08 | 1.98 | 1.83 | 1.64 | 1.58 | 1.54 | 1.62 | 1.51 | 1.67 | 1.71 | 1.72 | 1.50 | 1.77 | 1.77 | 1.76 |
| Quick ratio | 1.86 | 2.07 | 2.03 | 2.13 | 1.90 | 1.95 | 1.83 | 1.74 | 1.55 | 1.45 | 1.37 | 1.48 | 1.39 | 1.51 | 1.59 | 1.64 | 1.31 | 1.65 | 1.63 | 1.66 |
| 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 |
Landstar System Inc's liquidity ratios indicate the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has been relatively stable over the past few years, ranging from 1.50 to 2.22. An increasing trend in the current ratio, reaching 2.00 to 2.22 in the most recent quarters, suggests an improvement in the company's short-term liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a similar trend as the current ratio, with values ranging from 1.31 to 2.13. The quick ratio demonstrates Landstar System Inc's ability to cover its short-term obligations without relying on inventory sales.
The cash ratio, which indicates the company's ability to cover its current liabilities solely with cash and cash equivalents, has shown some variation, ranging from 0.12 to 0.90. Landstar System Inc's cash ratio has improved over time, with higher values observed in recent quarters, reflecting a stronger cash position to meet short-term obligations.
Overall, Landstar System Inc's liquidity ratios demonstrate a generally healthy liquidity position, with improving trends in recent periods, indicating the company's ability to meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | -308.74 | -325.46 | -329.64 | -312.24 | -325.01 | -382.54 | -392.39 | -395.67 | -428.29 | -519.69 | -536.53 | -517.56 | -521.46 | -515.60 | -491.67 | -435.44 | -389.61 | -348.74 | -280.94 | -281.82 |
The cash conversion cycle of Landstar System Inc has shown a consistent trend of negative values over the disclosed periods, indicating that the company has been efficient in managing its working capital and converting investments into cash quickly.
Starting from around -281.82 days in March 2020, the cash conversion cycle improved to reach its lowest point at -536.53 days in June 2022, reflecting a strong performance in cash management efficiency. However, there was a slight uptick in the cycle in the subsequent periods, with values ranging from -519.69 days to -308.74 days by December 2024.
Despite the fluctuations, Landstar System Inc has maintained a relatively low cash conversion cycle, suggesting effective management of its accounts receivable, inventory, and accounts payable. Additionally, the negative values signify that the company is able to generate cash from operating activities before having to pay its suppliers, which is a positive indicator of liquidity and operational efficiency.
Overall, the consistent negative values of the cash conversion cycle for Landstar System Inc indicate a robust working capital management strategy, allowing the company to efficiently utilize its resources and maintain a healthy cash flow position.