Landstar System Inc (LSTR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.94% | 92.76% | 94.56% | 94.24% | 92.65% |
| Operating profit margin | 5.16% | 6.49% | 7.68% | 7.73% | 6.12% |
| Pretax margin | 5.28% | 6.56% | 7.63% | 7.67% | 6.02% |
| Net profit margin | 4.07% | 4.99% | 5.79% | 5.84% | 4.65% |
Landstar System Inc has shown a consistent and strong gross profit margin over the last five years, starting at 92.65% in 2020 and steadily increasing to 91.94% in 2024. This indicates that the company has been effectively managing its cost of goods sold and generating a higher percentage of revenue as gross profit.
In terms of operating profit margin, Landstar System Inc has demonstrated a positive trend, with an increase from 6.12% in 2020 to 5.16% in 2024. Although there was a slight decrease in the most recent year, the company has maintained a relatively stable operating profit margin, reflecting its efficiency in controlling operating expenses while generating operating income.
The pretax margin also displays a consistent performance, ranging from 6.02% in 2020 to 5.28% in 2024. This suggests that Landstar System Inc has been able to sustain its profitability before taxes over the years, even though there was a slight decline in the most recent year.
Finally, the net profit margin of Landstar System Inc has decreased gradually from 4.65% in 2020 to 4.07% in 2024. This indicates that the company's bottom line profitability has been affected over time, possibly due to factors such as increased expenses or lower revenue growth.
Overall, Landstar System Inc has maintained solid profitability ratios, with strong gross and operating profit margins, albeit with a slight decline in net profit margin in recent years. The company's ability to sustain its profitability margins will be crucial for its long-term financial performance and growth.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.73% | 19.10% | 29.56% | 24.72% | 15.30% |
| Return on assets (ROA) | 10.81% | 14.67% | 22.31% | 18.65% | 11.62% |
| Return on total capital | 26.57% | 34.98% | 64.37% | 58.66% | 36.56% |
| Return on equity (ROE) | 20.15% | 26.87% | 48.57% | 44.26% | 27.77% |
Landstar System Inc has shown a positive trend in profitability ratios over the years.
- Operating return on assets (Operating ROA) has increased significantly from 15.30% in 2020 to 29.56% in 2022, indicating improved operational efficiency in generating profits from its assets. It dipped slightly to 19.10% in 2023 but remained relatively strong.
- Return on assets (ROA) also saw a consistent upward trend, reaching 22.31% in 2022 from 11.62% in 2020. However, there was a slight decline to 10.81% in 2024, which may indicate a decrease in profitability relative to its total assets.
- Return on total capital reflects a similar pattern of improvement, increasing from 36.56% in 2020 to 64.37% in 2022, showcasing the company's ability to generate returns for its providers of capital. The ratio decreased to 26.57% in 2024, possibly suggesting a decrease in capital efficiency.
- Return on equity (ROE) also exhibited positive growth, rising from 27.77% in 2020 to 48.57% in 2022, indicating the company's capability to deliver higher returns to its equity shareholders. The ratio fell to 20.15% in 2024, signaling a potential decrease in shareholder wealth creation.
Overall, Landstar System Inc has demonstrated strong profitability performance in recent years, with some fluctuations in certain ratios that may be worth further analysis to understand the drivers behind these changes.