Texas Roadhouse Inc (TXRH)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		26.37	26.68	21.45	24.33	27.70
DSO	days	13.84	13.68	17.02	15.00	13.18

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.37
= 13.84

The Days of Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payment from its customers more quickly, which is generally favorable as it indicates strong cash flow management and efficient operations.

Analyzing Texas Roadhouse Inc's DSO over the past five years, we observe the following trend:
- In 2023, the DSO stands at 13.84 days, slightly higher than the previous year's figure of 13.68 days. This could indicate a slight delay in collecting receivables compared to the previous year.
- In 2022, there was a decrease in DSO to 13.68 days from 17.02 days in 2021. This improvement suggests that the company was able to collect cash from its customers more efficiently compared to the previous year.
- In 2021, the DSO increased to 17.02 days from 15.00 days in 2020, indicating a slower collection period. This could raise concerns about the company's credit policies or difficulties in collecting outstanding payments.
- In 2020, the DSO was 15.00 days, slightly higher than 13.18 days in 2019. This increase may imply a slowdown in collecting receivables compared to the previous year.
- In 2019, the DSO was at 13.18 days, indicating efficient accounts receivable management.

Overall, Texas Roadhouse Inc has shown some fluctuations in its DSO over the past five years, with some years indicating improved efficiency in collecting payments from customers and others showing a slower collection period. It would be essential for the company to monitor and potentially optimize its accounts receivable processes to maintain healthy cash flows and operational efficiency.