Landstar System Inc (LSTR)

Quick 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	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
Receivables	US$ in thousands	743,762	810,801	848,839	899,811	967,793	1,133,680	1,216,520	1,223,120	1,154,310	1,010,540	902,950	824,872	764,169	637,908	489,182	562,528	588,549	598,415	594,122	601,128
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
Quick ratio		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	1.70	1.89	1.85	1.91

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 varying levels over the past years, ranging from a low of 1.31 to a high of 1.95. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company is able to cover its current liabilities with its quick assets, such as cash and accounts receivable, which is generally considered a positive sign.

Analyzing the trend, we observed that the quick ratio has generally been above 1 in the recent periods, indicating a strong liquidity position. The ratios have fluctuated within a moderate range, reflecting potential variations in the company's ability to quickly cover its short-term obligations. The ratios have shown some sensitivity to changes in the company's current assets and liabilities, reflecting the dynamic nature of its operations and financial position.

Overall, Landstar System Inc's quick ratio demonstrates a consistent ability to meet its short-term liabilities using its quick assets, suggesting a solid liquidity position and the ability to withstand potential financial challenges in the short term.