Texas Roadhouse Inc (TXRH)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.36 | 3.41 | 3.62 | 3.47 | 3.55 | 3.54 | 3.77 | 3.74 | 4.05 | 3.62 | 3.65 | 3.62 | 4.04 | 3.82 | 3.79 | 3.89 | 3.86 | 3.36 | 3.90 | 3.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 3.36 | 3.41 | 3.62 | 3.47 | 3.55 | 3.54 | 3.77 | 3.74 | 4.05 | 3.62 | 3.65 | 3.62 | 4.04 | 3.82 | 3.79 | 3.89 | 3.86 | 3.36 | 3.90 | 3.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.36 + — – —
= 3.36
The cash conversion cycle of Texas Roadhouse Inc, which measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has shown some variability over the reported periods.
From March 31, 2020, to December 31, 2024, Texas Roadhouse Inc's cash conversion cycle ranged from a low of 3.27 days to a high of 4.05 days. Notably, the company's cash conversion cycle generally remained within a relatively tight range, indicating efficient management of its working capital.
The trend in the cash conversion cycle fluctuated slightly throughout the reported periods, showing minor ups and downs. Overall, the company maintained a relatively stable cash conversion cycle over the years, suggesting effective management of inventory, accounts receivable, and accounts payable.
Analyzing the most recent data available, as of December 31, 2024, Texas Roadhouse Inc had a cash conversion cycle of 3.36 days. This indicates that the company was able to convert its investments into cash efficiently within a short period, suggesting strong operational performance and effective utilization of resources.
Peer comparison
Dec 31, 2024