Texas Roadhouse Inc (TXRH)

Days of inventory on hand (DOH)

		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
Inventory turnover		108.45	109.80	102.12	102.11	94.31	144.31	131.91	120.70	96.91	45.57	46.04	46.10	47.27	54.59	47.41	55.96	55.32	62.88	59.20	47.33
DOH	days	3.37	3.32	3.57	3.57	3.87	2.53	2.77	3.02	3.77	8.01	7.93	7.92	7.72	6.69	7.70	6.52	6.60	5.81	6.17	7.71

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 108.45
= 3.37

The Days of Inventory on Hand (DOH) ratio for Texas Roadhouse Inc shows the number of days it takes for the company to sell its average inventory. A lower DOH indicates that the company is moving its inventory efficiently, while a higher DOH suggests slow turnover.

The trend analysis of Texas Roadhouse Inc's DOH reveals fluctuations over the past years. The ratio ranged from a low of 2.53 days in Sep 30, 2022, to a high of 8.01 days in Sep 30, 2021. It decreased in the most recent quarters, with the DOH at 3.37 days as of Dec 31, 2023, compared to 3.77 days in Mar 31, 2022.

The lower DOH in recent quarters could imply that Texas Roadhouse Inc has improved its inventory management, leading to faster inventory turnover. This can free up working capital, reduce carrying costs, and enhance profitability. However, it's essential to monitor whether this trend is sustainable and not a result of temporary factors like seasonality or demand fluctuations.

Overall, a declining trend in DOH is a positive signal for investors, indicating efficient inventory management practices by Texas Roadhouse Inc. Monitoring this ratio alongside other financial metrics can provide a comprehensive understanding of the company's operational efficiency and financial health.