Landstar System Inc (LSTR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 344,149 | 571,083 | 505,668 | 252,950 | 298,904 |
| Interest expense | US$ in thousands | 2,861 | 3,263 | 3,141 | 3,489 | 3,907 |
| Interest coverage | 120.29 | 175.02 | 160.99 | 72.50 | 76.50 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $344,149K ÷ $2,861K
= 120.29
Landstar System Inc's interest coverage ratio has shown a generally upward trend over the past five years, indicating the company's ability to meet its interest obligations from its operating income. The interest coverage ratio was highest in 2022 at 175.02, suggesting that the company's earnings before interest and taxes (EBIT) were 175 times higher than its interest expenses for that year.
The decrease in the interest coverage ratio from 2022 to 2023 to 120.29 may indicate that Landstar System Inc's EBIT was not as significantly higher compared to its interest expenses in 2023. However, it is important to note that the interest coverage ratio still remains relatively high, indicating that the company's earnings are still comfortably covering its interest payments.
Overall, Landstar System Inc's interest coverage ratio demonstrates a strong ability to fulfill its interest obligations, providing a favorable indication of its financial health and stability.
Peer comparison
Dec 31, 2023