Texas Roadhouse Inc (TXRH)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 26.39 91.36 71.77 101.10 26.70 103.13 83.02 80.81 21.46 61.25 61.08 67.46 24.35 77.59 82.66 106.78 27.74 77.63 65.45 72.62
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
Working capital turnover — — — — — — — — — 34.08 29.11 36.66 553.12 791.31 — — — — — —

Texas Roadhouse Inc's activity ratios for the past few quarters reflect the efficiency of the company in managing its operations:

1. Inventory Turnover: The inventory turnover ratio has varied over time but generally indicates that Texas Roadhouse is effectively managing its inventory levels and turning over inventory quickly. This implies that the company is efficiently selling its goods and restocking as needed.

2. Receivables Turnover: The receivables turnover ratio has shown fluctuations, indicating variability in the company's collection efficiency. Higher turnover ratios suggest that Texas Roadhouse is collecting receivables quickly, which is favorable for cash flow management.

3. Payables Turnover: The payables turnover ratio has also fluctuated, indicating changes in the company's payment practices to its suppliers. Higher turnover ratios typically indicate that Texas Roadhouse is paying its suppliers promptly, which can help maintain good relationships and potentially negotiate better terms.

4. Working Capital Turnover: The data provided does not show figures for working capital turnover for most periods, except for some notably high values in certain quarters. A high working capital turnover ratio can indicate that Texas Roadhouse is efficiently utilizing its working capital to generate sales revenue.

Overall, analyzing these activity ratios provides insight into how effectively Texas Roadhouse is managing its assets, sales, and payments, which can be crucial in evaluating the company's operational efficiency and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 3.37 3.32 3.57 3.57 3.87 2.53 2.77 3.02 3.77 8.01 7.93 7.92 7.72 6.69 7.70 6.52 6.60 5.81 6.17 7.71
Days of sales outstanding (DSO) days 13.83 4.00 5.09 3.61 13.67 3.54 4.40 4.52 17.01 5.96 5.98 5.41 14.99 4.70 4.42 3.42 13.16 4.70 5.58 5.03
Number of days of payables days 11.56 11.47 11.31 11.05 10.75 7.58 8.83 10.08 11.35 23.19 27.62 29.19 23.12 22.13 21.12 13.80 20.07 20.09 22.66 28.79

Days of inventory on hand (DOH) measures how many days, on average, inventory is held before being sold. Texas Roadhouse Inc's DOH has been fluctuating over the periods, with a decrease in recent quarters. A lower DOH indicates better inventory management efficiency.

Days of sales outstanding (DSO) reflects the average number of days it takes to collect revenue after a sale is made. Texas Roadhouse Inc's DSO has also been varying but generally improving in recent quarters, indicating faster collection of receivables.

Number of days of payables indicates the average number of days it takes for the company to pay its suppliers. Texas Roadhouse Inc's payables days have been relatively stable, with a slight increase in recent quarters. A longer payables period can be beneficial for cash flow management.

Overall, Texas Roadhouse Inc's activity ratios show fluctuations but generally indicate improving efficiency in managing inventory and collecting receivables, with stable payment practices to suppliers.

Long-term

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
Fixed asset turnover 3.14 3.14 3.19 3.20 3.16 3.15 3.12 3.09 2.98 2.81 2.66 2.33 2.20 2.31 2.33 2.54 2.61 2.58 2.60 2.59
Total asset turnover 1.66 1.76 1.73 1.70 1.59 1.65 1.63 1.50 1.38 1.31 1.21 1.06 1.03 1.14 1.17 1.32 1.39 1.42 1.38 1.30

Texas Roadhouse Inc's fixed asset turnover has been relatively stable over the past two years, averaging around 3.10 times. This indicates that the company generates approximately $3.10 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests efficient utilization of fixed assets to drive sales.

On the other hand, the total asset turnover has shown fluctuations over the same period, ranging from 1.06 to 1.76. Despite the variability, the average total asset turnover is around 1.50. This ratio reflects the company's ability to generate sales relative to its total assets, with a higher ratio indicating better efficiency in asset utilization.

Overall, Texas Roadhouse Inc's long-term activity ratios suggest effective management of both fixed assets and total assets in generating revenue. The company's fixed asset turnover highlights the efficiency in utilizing fixed assets, while the total asset turnover indicates the effectiveness of utilizing all assets to drive sales.