Landstar System Inc (LSTR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.83 | 2.18 | 2.37 | 2.39 | 1.98 |
Landstar System Inc has maintained a consistently low level of debt relative to its assets, capital, and equity over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio. This suggests that the company relies more on equity financing rather than debt to fund its operations and investments.
However, the financial leverage ratio has shown some fluctuations over the period under review, ranging from 1.83 to 2.39. A higher financial leverage ratio indicates a higher level of debt financing relative to equity, which can magnify returns on equity but also increase financial risk. The varying trend in the financial leverage ratio implies that Landstar System Inc has adjusted its capital structure over the years to manage its financial risk and optimize its cost of capital.
Overall, the solvency ratios of Landstar System Inc reflect a conservative approach to capital structure management, with a preference for equity financing and a strategic use of debt to achieve a balanced financial position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 120.29 | 175.02 | 160.99 | 72.50 | 76.50 |
The interest coverage ratio measures a company's ability to meet its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company has a stronger ability to cover its interest obligations using its operating income.
Based on the data provided for Landstar System Inc, the interest coverage ratio has shown a fluctuating trend over the past five years. In 2023, the interest coverage ratio was 120.29, indicating that the company earned 120.29 times its interest expenses from its operating income. This represents a decrease from the previous year's ratio of 175.02, but still reflects a strong ability to cover interest payments.
In 2021 and 2022, Landstar System Inc demonstrated robust interest coverage ratios of 160.99 and 175.02, respectively, showcasing a solid financial position and ability to service its interest obligations comfortably.
However, there were slight declines in the interest coverage ratio in 2020 and 2019, with ratios of 72.50 and 76.50, respectively. These lower ratios suggest a decreased ability to cover interest expenses with operating income compared to the preceding years.
Overall, Landstar System Inc has primarily maintained a healthy interest coverage ratio over the analyzed period, indicating a generally strong ability to meet its interest payments using its operating earnings. It would be advisable for the company to continue monitoring and managing its interest coverage ratio to ensure ongoing financial stability.