Texas Roadhouse Inc (TXRH)

Payables 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
Payables	US$ in thousands	131,638	105,560	95,234	66,977	61,653
Payables turnover		31.57	33.96	32.15	15.78	18.19

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,155,830K ÷ $131,638K
= 31.57

Texas Roadhouse Inc's payables turnover ratio has exhibited a consistent trend over the past five years. The ratio, which measures the efficiency with which the company manages its accounts payable, has remained relatively high, indicating that Texas Roadhouse is adept at paying off its suppliers within a relatively short period.

The payables turnover ratio decreased from 33.96 in 2022 to 31.57 in 2023, suggesting a slight decrease in the speed at which the company is paying its suppliers. However, the ratio is still at a relatively high level, indicating efficient management of payables.

Comparing the current ratio to the ratios in 2020 and 2019, we see a marked improvement. In 2020 and 2019, the payables turnover ratios were 15.78 and 18.19, respectively, indicating that the company has improved its efficiency in managing payables over the past few years.

Overall, the consistent high payables turnover ratios suggest that Texas Roadhouse Inc has a strong ability to manage its accounts payable effectively, which is essential for maintaining good relationships with suppliers and optimizing working capital management.