Texas Roadhouse Inc (TXRH)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 104,246 | 173,861 | 335,645 | 363,155 | 107,879 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 745,434 | 652,010 | 602,144 | 506,318 | 417,220 |
| Cash ratio | 0.14 | 0.27 | 0.56 | 0.72 | 0.26 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($104,246K
+ $—K)
÷ $745,434K
= 0.14
The cash ratio for Texas Roadhouse Inc has fluctuated over the past five years. It decreased from 0.26 in 2019 to 0.14 in 2023, indicating a decline in the company's ability to cover its current liabilities solely with its cash and cash equivalents. This downward trend may raise concerns about the company's liquidity position.
The ratio then increased to 0.72 in 2020, reflecting a significant improvement in the company's cash position relative to its short-term obligations. However, this improvement was not sustained, as the ratio decreased to 0.56 in 2021 and further to 0.27 in 2022.
Overall, Texas Roadhouse Inc's cash ratio has shown variability, suggesting fluctuations in the company's ability to meet its short-term liabilities with available cash. Further analysis of the company's cash management practices and overall liquidity position may be warranted to understand the factors contributing to these fluctuations.
Peer comparison
Dec 31, 2023