Texas Roadhouse Inc (TXRH)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,373,330 | 4,631,670 | 4,014,920 | 3,463,950 | 2,398,120 |
| Total assets | US$ in thousands | 3,190,780 | 2,793,380 | 2,525,660 | 2,511,950 | 2,325,160 |
| Total asset turnover | 1.68 | 1.66 | 1.59 | 1.38 | 1.03 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,373,330K ÷ $3,190,780K
= 1.68
The total asset turnover ratio for Texas Roadhouse Inc has shown a positive trend over the past five years. It increased from 1.03 in December 31, 2020, to 1.68 by December 31, 2024. This indicates that the company generated $1.68 in sales for each dollar of assets on its balance sheet at the end of 2024.
The increasing trend in total asset turnover suggests that Texas Roadhouse has been more efficient in utilizing its assets to generate sales over the years. This may indicate improved operational efficiency, effective asset management, or increasing sales volume relative to its asset base. It also suggests that the company is becoming more productive in generating revenue from its invested capital.
Overall, the increasing total asset turnover ratio of Texas Roadhouse Inc reflects positively on the company's ability to efficiently utilize its assets to drive sales growth and generate value for its stakeholders.
Peer comparison
Dec 31, 2024