Landstar System Inc (LSTR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,813,310 | 1,801,850 | 1,931,880 | 2,045,460 | 1,653,800 |
| Total stockholders’ equity | US$ in thousands | 972,439 | 983,923 | 887,221 | 862,010 | 691,835 |
| Financial leverage ratio | 1.86 | 1.83 | 2.18 | 2.37 | 2.39 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,813,310K ÷ $972,439K
= 1.86
The financial leverage ratio of Landstar System Inc has shown a gradual decline over the past five years, starting at 2.39 in December 2020 and decreasing to 1.86 by December 2024. This indicates that the company has been reducing its level of financial leverage over time. A lower financial leverage ratio suggests that the company relies less on debt financing to fund its operations and investments, which can be seen as a positive sign of financial stability and risk management. However, it is essential to consider other factors such as industry norms and overall financial health when evaluating the impact of changes in the financial leverage ratio.
Peer comparison
Dec 31, 2024