Texas Roadhouse Inc (TXRH)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 245,225 104,246 173,861 335,645 363,155
Short-term investments US$ in thousands — — — — —
Total current liabilities US$ in thousands 828,130 745,434 652,010 602,144 506,318
Cash ratio 0.30 0.14 0.27 0.56 0.72

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($245,225K + $—K) ÷ $828,130K
= 0.30

The cash ratio of Texas Roadhouse Inc has exhibited a decreasing trend from 0.72 as of December 31, 2020, to 0.30 as of December 31, 2024. This ratio indicates the company's ability to cover its current liabilities solely with its available cash and cash equivalents. A higher cash ratio is generally preferred as it signifies a stronger liquidity position. The declining trend in Texas Roadhouse's cash ratio may raise concerns about its short-term liquidity management and ability to meet its immediate obligations in the future. It would be advisable for the company to monitor and potentially improve its cash management practices to ensure sufficient liquidity to meet its short-term financial obligations.