Texas Roadhouse Inc (TXRH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,627,390	4,009,110	3,460,580	2,394,680	2,750,280
Property, plant and equipment	US$ in thousands	1,474,720	1,270,350	1,162,440	1,088,620	1,056,560
Fixed asset turnover		3.14	3.16	2.98	2.20	2.60

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,627,390K ÷ $1,474,720K
= 3.14

The fixed asset turnover ratio for Texas Roadhouse Inc has shown fluctuations over the past five years. The ratio indicates how efficiently the company is generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio is generally preferred as it suggests that the company is effectively utilizing its fixed assets to generate sales.

In 2023, the fixed asset turnover ratio decreased slightly to 3.14 from 3.16 in 2022. This slight decline may indicate a slightly lower efficiency in utilizing fixed assets to generate revenue compared to the previous year.

In 2021, the ratio was 2.98, showing a moderate improvement from the prior year. This improvement suggests that the company made better use of its fixed assets in generating sales.

In 2020, the ratio was 2.20, indicating a significant decrease in efficiency compared to the previous year. This decline may suggest challenges in effectively utilizing fixed assets to drive revenue during that period.

In 2019, the ratio stood at 2.60, showing a moderate level of efficiency in generating revenue from fixed assets.

Overall, while the company has experienced fluctuations in its fixed asset turnover ratio over the years, it is important for Texas Roadhouse Inc to monitor and enhance its efficiency in utilizing fixed assets to drive sales and overall profitability.