Texas Roadhouse Inc (TXRH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,627,390 | 4,009,110 | 3,460,580 | 2,394,680 | 2,750,280 |
| Receivables | US$ in thousands | 175,474 | 150,264 | 161,358 | 98,418 | 99,305 |
| Receivables turnover | 26.37 | 26.68 | 21.45 | 24.33 | 27.70 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,627,390K ÷ $175,474K
= 26.37
The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables from its customers during a specific period. Texas Roadhouse Inc's receivables turnover has shown some fluctuations over the past five years, ranging from 21.45 to 27.70.
The higher the receivables turnover ratio, the quicker the company is collecting its outstanding receivables. Texas Roadhouse Inc's receivables turnover has generally been quite high, indicating that the company efficiently manages its accounts receivable.
It's worth noting that a high receivables turnover ratio could also indicate that the company has strict credit policies in place or that it primarily deals with cash transactions. On the other hand, a low receivables turnover ratio may suggest that the company is facing difficulties in collecting payments from its customers.
In conclusion, Texas Roadhouse Inc's relatively high and consistent receivables turnover ratios over the years reflect the company's effective management in collecting outstanding receivables, which is a positive sign of its financial health and operational efficiency.
Peer comparison
Dec 31, 2023