Texas Roadhouse Inc (TXRH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,426,080 | 3,896,590 | 3,361,290 | 2,857,440 | 2,114,540 |
| Inventory | US$ in thousands | 40,756 | 38,320 | 38,015 | 31,595 | 22,364 |
| Inventory turnover | 108.60 | 101.69 | 88.42 | 90.44 | 94.55 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,426,080K ÷ $40,756K
= 108.60
Texas Roadhouse Inc's inventory turnover has shown a relatively stable trend over the past five years. The ratio decreased from 94.55 in December 2020 to 90.44 in December 2021, indicating a slight decline in the efficiency of inventory management. However, it further decreased to 88.42 in December 2022, suggesting potential inefficiencies in managing and selling inventory.
Subsequently, the inventory turnover improved significantly to 101.69 in December 2023, indicating a notable uptick in efficiency in converting inventory into sales. This trend continued in December 2024, with the ratio reaching 108.60, signifying a further enhancement in inventory management effectiveness.
Overall, Texas Roadhouse Inc has demonstrated improvements in inventory turnover, which can be indicative of better inventory control, effective sales strategies, and possibly reduced holding costs. This trend suggests that the company has been more efficient in managing its inventory levels and generating sales from its inventory over the analyzed period.
Peer comparison
Dec 31, 2024