Texas Roadhouse Inc (TXRH)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,630,470	4,473,440	4,344,988	4,198,398	4,011,603	3,898,774	3,774,419	3,648,597	3,462,567	3,206,025	2,968,267	2,545,904	2,396,677	2,483,926	2,503,230	2,716,633	2,754,780	2,635,454	2,579,392	2,518,801
Property, plant and equipment	US$ in thousands	1,474,720	1,425,170	1,360,130	1,310,780	1,270,350	1,237,340	1,208,000	1,181,710	1,162,440	1,139,660	1,117,390	1,093,790	1,088,620	1,076,920	1,072,170	1,068,700	1,056,560	1,020,170	991,339	971,135
Fixed asset turnover		3.14	3.14	3.19	3.20	3.16	3.15	3.12	3.09	2.98	2.81	2.66	2.33	2.20	2.31	2.33	2.54	2.61	2.58	2.60	2.59

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,630,470K ÷ $1,474,720K
= 3.14

The fixed asset turnover ratio for Texas Roadhouse Inc has been relatively stable over the past few years, ranging between 2.20 and 3.20. This ratio indicates that, on average, the company generates between $2.20 and $3.20 in revenue for every dollar invested in fixed assets.

A higher fixed asset turnover ratio suggests that the company is more efficient in utilizing its fixed assets to generate sales, which is a positive sign of operational efficiency. Texas Roadhouse's ratio of around 3.14 in the latest quarter signifies that the company is effectively using its fixed assets to generate revenue.

Overall, the trend in Texas Roadhouse's fixed asset turnover ratio has been upward over the past few years, indicating improving efficiency in utilizing fixed assets. This trend is a positive indication of the company's ability to generate sales from its investment in property, plant, and equipment.