Landstar System Inc (LSTR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	743,762	967,793	1,154,310	764,169	588,549
Total current liabilities	US$ in thousands	675,224	878,135	1,009,980	806,137	552,904
Quick ratio		1.90	1.55	1.39	1.31	1.70

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($481,043K + $59,661K + $743,762K) ÷ $675,224K
= 1.90

The quick ratio of Landstar System Inc has shown a fluctuating trend over the past five years. In 2023, the quick ratio improved to 1.90 compared to the previous year's 1.55. This indicates that the company has a higher level of liquid assets available to cover its current liabilities quickly. The steady increase in the quick ratio from 2020 to 2023 suggests that Landstar System Inc has been managing its short-term obligations more effectively and potentially has a stronger liquidity position. However, it is important to note that the quick ratio dipped in 2021 before rebounding in the following years. Overall, the company's quick ratio of above 1 implies that it has sufficient liquid assets to meet its short-term obligations, which is a positive indicator of its financial stability.