Texas Roadhouse Inc (TXRH)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,155,830	3,585,300	3,061,840	1,057,190	1,121,180
Inventory	US$ in thousands	38,320	38,015	31,595	22,364	20,267
Inventory turnover		108.45	94.31	96.91	47.27	55.32

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,155,830K ÷ $38,320K
= 108.45

Texas Roadhouse Inc's inventory turnover has shown a fluctuating trend over the past five years. In 2023, the inventory turnover ratio reached 108.45, indicating a significant improvement compared to the previous year's ratio of 94.31. This suggests that the company is managing its inventory more efficiently, turning over its inventory at a faster rate.

Comparing this to 2021 and 2020 where the ratios were 96.91 and 47.27, respectively, there seems to have been a substantial increase in inventory turnover, signifying a positive trend in inventory management. However, the ratio in 2019 was 55.32, indicating that there have been fluctuations over the years.

Overall, Texas Roadhouse Inc's inventory turnover ratio has improved in 2023, which is a favorable indicator of effective inventory management and potential operational efficiency. Tracking this ratio over time can provide insights into the company's ability to manage its inventory levels and meet customer demand efficiently.