Texas Roadhouse Inc (TXRH)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	4,426,070	4,261,050	4,150,240	4,040,839	3,937,026	3,773,106	3,689,431	3,591,543	3,429,445	3,320,522	3,179,412	3,029,884	2,857,444	2,658,149	2,465,818	2,192,867	2,114,537	2,162,139	2,164,091	2,266,447
Inventory	US$ in thousands	40,756	39,842	41,199	38,384	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
Inventory turnover		108.60	106.95	100.74	105.27	102.74	103.12	96.78	97.56	90.21	100.91	99.88	100.85	90.44	95.67	96.19	93.86	94.55	108.71	93.68	111.53

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,426,070K ÷ $40,756K
= 108.60

The inventory turnover of Texas Roadhouse Inc has shown some fluctuations over the past few years, ranging from a low of 90.21 at the end of December 2022 to a high of 111.53 at the end of March 2020. Overall, the company's inventory turnover ratio has generally been above 90, indicating that the company is efficient in managing its inventory levels and converting them into sales.

The highest inventory turnover ratio was seen in the first quarter of the year 2020, which could indicate strong sales volume relative to the level of inventory held. Conversely, the lowest ratio occurred at the end of December 2022, which may suggest a decrease in sales volume relative to the amount of inventory in stock.

The average inventory turnover ratio over this period seems to be around 100, indicating that Texas Roadhouse Inc is turning over its inventory approximately 100 times a year. This indicates that the company is effectively managing its inventory levels to support its sales operations.

It's important to note that while a high inventory turnover ratio can be a sign of efficient inventory management, too high a ratio may indicate potential issues such as stockouts or insufficient inventory levels. On the other hand, a low ratio may indicate excess inventory that could lead to obsolescence or higher storage costs.