Texas Roadhouse Inc (TXRH)

Payables 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
Payables	US$ in thousands	131,638	126,219	120,653	113,834	105,560	98,678	101,619	100,093	95,234	80,444	89,300	86,131	66,977	65,843	63,363	42,984	61,653	59,504	65,799	65,413
Payables turnover		31.57	31.83	32.26	33.02	33.96	48.12	41.32	36.23	32.15	15.74	13.22	12.50	15.78	16.49	17.29	26.46	18.19	18.17	16.11	12.68

December 31, 2023 calculation

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

The payables turnover ratio for Texas Roadhouse Inc has shown fluctuating trends over the past few years. The ratio indicates the company's efficiency in managing its accounts payable by showing how many times a company pays off its suppliers within a given period.

From Dec 2019 to Dec 2020, the payables turnover remained relatively stable, ranging between 12.68 to 18.19. However, a significant increase was seen in Sep 2022, where the ratio spiked to 48.12 before gradually decreasing in subsequent quarters. This surge in Sep 2022 could indicate either improved accounts payable management or changes in the company's payment terms with suppliers.

It is noteworthy that the payables turnover ratio has been consistently high since Sep 2022, indicating that Texas Roadhouse Inc is efficiently managing its payables and potentially paying off its suppliers at a faster rate compared to earlier years. This trend suggests a positive relationship with suppliers and effective working capital management. However, it is essential to monitor future quarters to assess the sustainability of this improved payables turnover performance.