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.