Texas Roadhouse Inc (TXRH)

Days of sales outstanding (DSO)

		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
Receivables turnover		26.39	91.36	71.77	101.10	26.70	103.13	83.02	80.81	21.46	61.25	61.08	67.46	24.35	77.59	82.66	106.78	27.74	77.63	65.45	72.62
DSO	days	13.83	4.00	5.09	3.61	13.67	3.54	4.40	4.52	17.01	5.96	5.98	5.41	14.99	4.70	4.42	3.42	13.16	4.70	5.58	5.03

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.39
= 13.83

Days Sales Outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. Texas Roadhouse Inc has shown fluctuation in DSO over the periods analyzed. A lower DSO indicates a faster collection of receivables, while a higher DSO implies delayed collections.

Looking at the trend, the DSO has generally been relatively low, with some spikes in certain periods. For instance, in March 2020, DSO was 3.42 days, indicating efficient collection of receivables. However, in December 2021 and 2019, DSO was 17.01 days and 13.16 days respectively, suggesting a longer collection period in those quarters.

It is worth noting that a low DSO may indicate effective credit management and prompt collection efforts, while a high DSO could signal potential issues with credit policies or difficulties in collecting payments from customers. The company should keep monitoring and managing its DSO to ensure healthy cash flow and efficient working capital management.