Landstar System Inc (LSTR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 972,439 | 1,015,920 | 1,000,810 | 1,017,910 | 983,923 | 1,043,150 | 993,561 | 935,652 | 887,221 | 873,173 | 856,870 | 856,149 | 862,010 | 899,690 | 830,173 | 762,919 | 691,835 | 705,634 | 649,121 | 627,095 |
| Return on total capital | 25.60% | 26.15% | 28.27% | 29.75% | 34.98% | 37.76% | 45.00% | 54.46% | 64.37% | 68.20% | 69.25% | 66.02% | 58.66% | 49.05% | 47.25% | 39.61% | 36.56% | 33.31% | 34.41% | 43.38% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $248,907K ÷ ($—K + $972,439K)
= 25.60%
Landstar System Inc's return on total capital has shown a fluctuating trend over the past few years, ranging from a low of 25.60% as of December 31, 2024, to a high of 69.25% as of June 30, 2022. The return on total capital indicates the company's efficiency in generating profits from the total capital invested in the business.
The company experienced a significant increase in return on total capital from December 31, 2021, reaching its peak at 69.25% by June 30, 2022. However, the ratio gradually declined thereafter, dropping to 25.60% by December 31, 2024. This downward trend suggests a potential decrease in profitability relative to the capital employed in the business.
While a higher return on total capital is generally favorable, it is essential to evaluate the trend over a longer period to understand the company's overall performance and efficiency in utilizing its capital resources effectively. Further analysis and comparison with industry benchmarks could provide additional insights into Landstar System Inc's financial performance and competitiveness in the market.
Peer comparison
Dec 31, 2024