Landstar System Inc (LSTR)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	1,801,850	1,852,530	1,837,760	1,837,860	1,931,880	1,988,540	2,017,070	2,045,810	2,045,460	1,914,040	1,703,210	1,574,460	1,653,800	1,392,200	1,272,110	1,236,430	1,427,710	1,385,730	1,348,690	1,350,940
Total stockholders’ equity	US$ in thousands	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	721,469	755,975	728,300	728,260
Financial leverage ratio		1.83	1.78	1.85	1.96	2.18	2.28	2.35	2.39	2.37	2.13	2.05	2.06	2.39	1.97	1.96	1.97	1.98	1.83	1.85	1.86

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,801,850K ÷ $983,923K
= 1.83

Landstar System Inc's financial leverage ratio has fluctuated over the past years. The ratio indicates how much the company relies on debt financing compared to equity. A higher ratio suggests higher financial risk due to increased reliance on debt.

The financial leverage ratio was relatively stable around 1.8 to 2.0 from 2019 to mid-2022. However, starting from the latter half of 2022, the ratio began to increase significantly, peaking at 2.39 in the first quarter of 2022. This rise may indicate a shift towards more debt financing in the company's capital structure during this period.

Subsequently, there was a slight decrease in the financial leverage ratio in the following quarters of 2022 and the first half of 2023, although it remained elevated compared to previous years. This reduction may suggest some efforts to moderate the reliance on debt.

Overall, the trend in Landstar System Inc's financial leverage ratio highlights fluctuations and potential changes in the company's financing decisions. It would be essential for investors and stakeholders to monitor how the company manages its debt levels to assess its financial risk and stability in the future.