Landstar System Inc (LSTR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.76% | 94.56% | 94.24% | 92.65% | 93.05% |
| Operating profit margin | 6.49% | 7.68% | 7.73% | 6.12% | 7.32% |
| Pretax margin | 6.56% | 7.63% | 7.67% | 6.02% | 7.24% |
| Net profit margin | 4.99% | 5.79% | 5.84% | 4.65% | 5.58% |
Landstar System Inc's profitability ratios indicate its ability to generate profits relative to its revenue over the past five years. The gross profit margin has shown a slight decline from 93.05% in 2019 to 92.76% in 2023, with the company consistently maintaining high margins above 90%. This suggests effective cost management in generating revenue.
Operating profit margin, a measure of efficiency in managing operating expenses, has fluctuated between 6.12% in 2020 and 7.73% in 2021, with a decrease to 6.49% in 2023. This indicates some variability in the company's ability to control its operating costs.
The pretax margin, reflecting profitability before taxes, has varied between 6.02% in 2020 and 7.67% in 2021, with a slight decrease to 6.56% in 2023. This suggests that despite fluctuations, Landstar System Inc has been able to maintain a stable level of profitability before tax expenses.
The net profit margin, representing profitability after all expenses including taxes, has ranged from 4.65% in 2020 to 5.84% in 2021, with a decrease to 4.99% in 2023. This indicates that the company may have experienced some challenges in generating bottom-line profits in the most recent year.
Overall, Landstar System Inc has demonstrated a strong gross profit margin, while the fluctuations in operating profit margin and net profit margin suggest potential areas for improvement in controlling operating expenses and enhancing overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.10% | 29.56% | 24.72% | 15.30% | 20.94% |
| Return on assets (ROA) | 14.67% | 22.31% | 18.65% | 11.62% | 15.95% |
| Return on total capital | 34.98% | 64.37% | 58.66% | 36.56% | 41.43% |
| Return on equity (ROE) | 26.87% | 48.57% | 44.26% | 27.77% | 31.56% |
Landstar System Inc's profitability ratios depict a consistent and generally positive trend over the past five years.
The Operating Return on Assets (Operating ROA) has shown a slight decline from 2019 to 2023, indicating that the company's ability to generate operating income from its assets has decreased over this period. However, the ratio still remains relatively high at an average of 21.72%.
Return on Assets (ROA) has followed a similar pattern, declining slightly but remaining at a healthy level. This ratio indicates Landstar's ability to generate profit from its total assets, with an average of 16.64% over the five-year period.
Return on Total Capital has shown a substantial increase from 2019 to 2023, reflecting the company's efficiency in generating returns from its total capital employed. The average ratio stands at an impressive 47.60%.
Return on Equity (ROE) has also displayed a positive trajectory, with a gradual increase from 2019 to 2023. This ratio signifies the company's ability to generate profit for its shareholders from the equity invested, with an average of 35.80%.
Overall, Landstar System Inc's profitability ratios indicate strong performance and efficiency in utilizing its assets and capital to generate returns for both the company and its shareholders over the past five years.