Landstar System Inc (LSTR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.86 | 1.83 | 2.18 | 2.37 | 2.39 |
Landstar System Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been recorded at 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company has minimal debt relative to its assets, capital, and equity during this period.
Furthermore, the financial leverage ratio, which measures the company's use of debt to finance its operations, has shown a decreasing trend from 2.39 on December 31, 2020, to 1.86 on December 31, 2024. This indicates that Landstar System Inc has been reducing its reliance on debt over time, which can enhance its financial stability and flexibility.
Overall, based on the solvency ratios analyzed, Landstar System Inc appears to have a solid financial position with conservative leverage and a strong ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 63.40 | 89.04 | 175.02 | 160.99 | 72.50 |
Landstar System Inc's interest coverage ratio has shown steady improvement over the years, indicating the company's increasing ability to cover its interest expenses with its operating income.
As of December 31, 2020, the interest coverage ratio stood at 72.50, signifying that the company generated 72.50 times the operating income needed to cover its interest expenses. This ratio increased significantly to 160.99 by December 31, 2021, and further improved to 175.02 by December 31, 2022, reflecting a strong financial position and efficient management of debt obligations.
However, there was a slight decline in the interest coverage ratio to 89.04 by December 31, 2023, suggesting a possible increase in interest expenses relative to operating income during that period. The ratio further dropped to 63.40 as of December 31, 2024, indicating a potential challenge in meeting interest payments with operating income.
Overall, Landstar System Inc's interest coverage ratio trend indicates a generally healthy financial position with sufficient operating income to cover interest expenses, although there may be fluctuations in certain years that could warrant further analysis and monitoring.