Landstar System Inc (LSTR)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 195,946 264,394 430,914 381,524 192,106
Total stockholders’ equity US$ in thousands 972,439 983,923 887,221 862,010 691,835
ROE 20.15% 26.87% 48.57% 44.26% 27.77%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $195,946K ÷ $972,439K
= 20.15%

Landstar System Inc's return on equity (ROE) has shown fluctuating trends over the past five years. Starting at 27.77% in December 2020, the ROE increased significantly to 44.26% by December 2021, indicating improved profitability relative to shareholders' equity. This positive trend continued with a further rise to 48.57% by December 2022, reflecting strong earnings generated from the company's equity base.

However, in the subsequent years, Landstar System Inc experienced a decline in ROE. By December 2023, the ROE dropped to 26.87%, suggesting a decrease in profitability compared to the equity invested. This trend continued into December 2024, with ROE falling to 20.15%, reflecting a further decline in the company's ability to generate profits from shareholders' equity.

Overall, while Landstar System Inc demonstrated periods of strong ROE growth in the earlier years, the recent decline indicates potential challenges in maintaining profitability relative to equity in the later years. It is essential for investors and stakeholders to monitor these fluctuations and understand the factors driving the changes in ROE to assess the company's financial performance and sustainability.