Landstar System Inc (LSTR)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	248,907	265,703	282,935	302,826	344,149	393,916	447,066	509,534	571,083	595,489	593,403	565,233	505,668	441,340	392,280	302,213	252,950	235,057	223,343	272,013
Interest expense (ttm)	US$ in thousands	4,076	801	1,409	3,411	2,861	3,114	3,272	2,517	3,263	3,189	3,113	3,114	3,141	3,179	3,277	3,376	3,489	3,619	5,596	4,796
Interest coverage		61.07	331.71	200.81	88.78	120.29	126.50	136.63	202.44	175.02	186.73	190.62	181.51	160.99	138.83	119.71	89.52	72.50	64.95	39.91	56.72

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $248,907K ÷ $4,076K
= 61.07

Landstar System Inc's interest coverage ratio has shown fluctuations over the past few years based on the provided data. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its operating income.

From March 31, 2020, to June 30, 2022, Landstar's interest coverage steadily improved, increasing from 56.72 to 190.62. This indicates that the company's operating income was more than sufficient to cover its interest expenses during this period.

However, starting from September 30, 2022, the interest coverage ratio began to decline, reaching a low of 88.78 on March 31, 2024. This suggests that Landstar's operating income may have been less able to cover its interest payments during this period.

The interest coverage ratio improved significantly on June 30, 2024, reaching 200.81, before experiencing a sharp increase to 331.71 on September 30, 2024. This improvement indicates that the company's operating income strengthened, enabling it to cover its interest obligations more comfortably.

Overall, fluctuations in Landstar System Inc's interest coverage ratio may reflect varying levels of profitability and financial strength. Investors and creditors should closely monitor these trends to assess the company's ability to meet its debt obligations.