Landstar System Inc (LSTR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Landstar System Inc's solvency ratios, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, have consistently remained at 0.00 over the past few quarters. This suggests that the company has minimal or no debt in relation to its assets, capital, and equity.
However, when looking at the financial leverage ratio, we can see fluctuations over the quarters, ranging from 1.78 to 2.39. The financial leverage ratio indicates that the company's assets are financed by a mix of equity and debt. A higher ratio signifies higher financial leverage, indicating that the company relies more on debt to finance its operations.
The increasing trend in the financial leverage ratio from 1.83 in Q4 2019 to 2.39 in Q1 2022, followed by a decrease to 1.97 in Q3 2022, signifies varying degrees of financial risk and reliance on debt in the company's capital structure. It is crucial for stakeholders to monitor this ratio to understand the company's ability to meet its financial obligations and manage its debt levels effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1,410.45 | 792.59 | 682.54 | 295.38 | 175.02 | 186.73 | 190.62 | 181.51 | 160.99 | 138.83 | 119.71 | 89.52 | 72.50 | 64.95 | 39.91 | 56.72 | 76.50 | 105.45 | 333.24 | 189.49 |
Landstar System Inc's interest coverage ratio has been fluctuating over the past few quarters. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio is generally considered favorable as it signifies that the company is generating enough operating income to cover its interest expenses.
Looking at the data provided, Landstar System Inc's interest coverage ratio has varied significantly. In the most recent quarter, ending December 31, 2023, the interest coverage ratio was 1,410.45, which is substantially higher compared to the ratios in the preceding quarters. This indicates a strong ability to cover interest payments with operating income.
However, it's worth noting that the interest coverage ratio experienced a sharp decline in the quarter ending March 31, 2023, where it dropped to 295.38 from 682.54 in the previous quarter. This significant drop may raise concerns about the company's ability to cover its interest expenses with its operating income during that period.
Overall, while Landstar System Inc's interest coverage ratio has shown some volatility, the most recent data point suggests a very high level of coverage. It's important for stakeholders to monitor future quarters to assess the company's continued ability to meet its interest obligations.