Texas Roadhouse Inc (TXRH)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	4,155,830	4,017,357	3,892,862	3,758,750	3,585,298	4,748,651	4,198,972	3,626,048	3,061,840	1,265,989	1,180,229	1,076,972	1,057,192	1,085,773	1,095,301	1,137,177	1,121,185	1,081,335	1,060,013	829,183
Inventory	US$ in thousands	38,320	36,589	38,121	36,812	38,015	32,905	31,831	30,043	31,595	27,784	25,634	23,362	22,364	19,889	23,102	20,321	20,267	17,198	17,907	17,521
Inventory turnover		108.45	109.80	102.12	102.11	94.31	144.31	131.91	120.70	96.91	45.57	46.04	46.10	47.27	54.59	47.41	55.96	55.32	62.88	59.20	47.33

December 31, 2023 calculation

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

The inventory turnover ratio of Texas Roadhouse Inc has shown fluctuations over the past few quarters. The ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced during a specific period.

The latest inventory turnover ratios indicate a high turnover rate, with figures exceeding 100 in Dec 2023 and Sep 2023. This implies that Texas Roadhouse is selling and replacing its inventory more than 100 times a year, which is a positive sign of efficient inventory management.

However, it is important to note the significant drop in inventory turnover in Mar 2021 (45.57) compared to the previous quarters. This could indicate potential issues such as overstocking or slow-moving inventory during that period.

Overall, Texas Roadhouse's inventory turnover has shown variability, but the recent high turnover ratios suggest strong efficiency in managing its inventory levels. Monitoring this ratio over time can provide insights into the company's ability to control costs and optimize its operations.