Landstar System Inc (LSTR)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	248,907	344,149	571,083	505,668	252,950
Total assets	US$ in thousands	1,813,310	1,801,850	1,931,880	2,045,460	1,653,800
Operating ROA		13.73%	19.10%	29.56%	24.72%	15.30%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $248,907K ÷ $1,813,310K
= 13.73%

Landstar System Inc's operating return on assets (ROA) has shown a generally positive trend over the past five years, starting at 15.30% on December 31, 2020, and reaching a peak of 29.56% on December 31, 2022. This indicates that the company has been efficiently utilizing its assets to generate operating income during this period.

However, there was a slight decrease in operating ROA to 19.10% on December 31, 2023, followed by a more noticeable decline to 13.73% on December 31, 2024. The decrease in the last two years may suggest a potential decrease in profitability relative to the assets employed, which could be a concern for stakeholders.

Overall, while Landstar System Inc's operating ROA has exhibited fluctuations, the company has demonstrated the ability to generate strong returns on its assets in recent years, although it would be important to closely monitor future trends to ensure sustained profitability.