Landstar System Inc (LSTR)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	248,907	265,703	282,935	302,826	344,149	393,916	447,066	509,534	571,083	595,489	593,403	565,233	505,668	441,340	392,280	302,213	252,950	235,057	223,343	272,013
Total assets	US$ in thousands	1,813,310	1,757,260	1,755,200	1,745,840	1,801,850	1,852,530	1,837,760	1,837,860	1,931,880	1,988,540	2,017,070	2,045,810	2,045,460	1,914,040	1,703,210	1,574,460	1,653,800	1,392,200	1,272,110	1,236,430
Operating ROA		13.73%	15.12%	16.12%	17.35%	19.10%	21.26%	24.33%	27.72%	29.56%	29.95%	29.42%	27.63%	24.72%	23.06%	23.03%	19.19%	15.30%	16.88%	17.56%	22.00%

December 31, 2024 calculation

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

Landstar System Inc's operating return on assets (operating ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating ROA started at 22.00% in March 31, 2020, and experienced a decline to 13.73% by December 31, 2024.

The trend in operating ROA saw a general decrease in the initial period before showing some improvement in mid-2021, reaching a peak of 29.95% in September 30, 2022. However, the operating ROA declined slightly in the latter part of the period, settling at 13.73% by December 31, 2024.

It is crucial for stakeholders to monitor this ratio closely as it indicates the efficiency of Landstar System Inc in generating operating income from its assets. The declining trend in operating ROA suggests the company may need to reassess its asset management strategies to improve profitability in the future.