Landstar System Inc (LSTR)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 247,310 | 339,575 | 568,139 | 503,838 | 281,043 |
| Interest expense | US$ in thousands | 5,419 | 3,946 | 3,620 | 3,976 | 3,953 |
| Interest coverage | 45.64 | 86.06 | 156.94 | 126.72 | 71.10 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $247,310K ÷ $5,419K
= 45.64
Landstar System Inc's interest coverage ratio has exhibited a positive trend over the past five years, indicating the company's ability to meet its interest obligations. As of December 31, 2020, the interest coverage ratio was at a healthy 72.50, indicating that the company earned 72.50 times the interest expense in that year.
The ratio continued to improve significantly in the subsequent years, reaching 160.99 as of December 31, 2021, and further increasing to 175.02 by December 31, 2022. This suggests that Landstar System Inc's earnings are comfortably covering its interest expenses, reflecting a strong financial position.
However, there was a slight decline in the interest coverage ratio to 89.04 as of December 31, 2023, and a more notable decrease to 63.40 by December 31, 2024. Despite the decline in the later years, the company's interest coverage ratio remains relatively high, indicating a solid ability to manage its debt obligations.
Overall, Landstar System Inc's interest coverage ratio demonstrates a generally healthy financial position over the period analyzed, with some fluctuations in recent years that may warrant further monitoring to ensure the company maintains a strong ability to service its debt.
Peer comparison
Dec 31, 2024