Texas Roadhouse Inc (TXRH)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.36 | 3.59 | 4.13 | 4.04 | 3.86 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 3.36 | 3.59 | 4.13 | 4.04 | 3.86 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.36 + — – —
= 3.36
The cash conversion cycle for Texas Roadhouse Inc has shown a slight increase over the years, from 3.86 days in December 31, 2020, to 4.04 days in December 31, 2021, and further to 4.13 days in December 31, 2022. However, the trend reversed in the following years with a decrease to 3.59 days in December 31, 2023, and a further drop to 3.36 days in December 31, 2024. This indicates that the company has been able to manage its cash conversion cycle more efficiently towards the end of the period, allowing for quicker conversion of investments in inventory and receivables into cash.
Peer comparison
Dec 31, 2024