Texas Roadhouse Inc (TXRH)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		108.60	101.69	88.42	90.44	94.55
DOH	days	3.36	3.59	4.13	4.04	3.86

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 108.60
= 3.36

The Days of Inventory on Hand (DOH) for Texas Roadhouse Inc have shown a slight upward trend over the past few years, increasing from 3.86 days as of December 31, 2020, to 4.04 days as of December 31, 2021, and further to 4.13 days as of December 31, 2022. However, there was a decrease in DOH to 3.59 days as of December 31, 2023, followed by a further decline to 3.36 days as of December 31, 2024.

Overall, the company has maintained relatively low levels of inventory on hand compared to its sales, which suggests effective inventory management practices. A decreasing trend in DOH indicates that Texas Roadhouse Inc has been more efficient in managing its inventory, potentially reducing carrying costs and improving liquidity. However, it is important for the company to continue monitoring and optimizing its inventory levels to ensure smooth operations and cost efficiency.