Landstar System Inc (LSTR)

Net profit margin

		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
Net income (ttm)	US$ in thousands	264,394	299,709	338,274	384,270	430,914	450,927	449,384	429,123	381,524	333,280	296,491	228,451	192,106	177,083	168,452	205,298	227,720	245,928	259,658	261,081
Revenue (ttm)	US$ in thousands	5,303,320	5,773,650	6,300,440	6,901,640	7,436,560	7,706,810	7,624,980	7,220,640	6,537,570	5,888,910	5,240,160	4,492,954	4,132,990	3,831,509	3,757,619	3,979,145	4,084,579	4,272,050	4,462,470	4,600,220
Net profit margin		4.99%	5.19%	5.37%	5.57%	5.79%	5.85%	5.89%	5.94%	5.84%	5.66%	5.66%	5.08%	4.65%	4.62%	4.48%	5.16%	5.58%	5.76%	5.82%	5.68%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $264,394K ÷ $5,303,320K
= 4.99%

The net profit margin of Landstar System Inc has shown a relatively stable trend over the past few years, fluctuating between 4.48% to 5.89%. It indicates that, on average, the company retains approximately 5.38% of its revenue as profit after all expenses have been deducted. The slight fluctuations in the net profit margin suggest that the company has been able to manage its costs effectively to maintain profitability. However, there was a notable decrease in the net profit margin in the first quarter of 2021, which may require further investigation to identify the specific factors contributing to this decline. Overall, the consistent net profit margin reflects Landstar System Inc's ability to generate profit relative to its revenue, but ongoing monitoring and evaluation of performance drivers are essential to ensure sustained profitability.