Texas Roadhouse Inc (TXRH)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	356,474	396,841	563,525	510,651	247,899
Total current liabilities	US$ in thousands	745,434	652,010	602,144	506,318	417,220
Current ratio		0.48	0.61	0.94	1.01	0.59

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $356,474K ÷ $745,434K
= 0.48

The current ratio of Texas Roadhouse Inc has fluctuated over the past five years. In 2019 and 2020, the company's current ratio was relatively low at 0.59 and 1.01, respectively. This indicates that in those years, Texas Roadhouse had fewer current assets to cover its current liabilities.

In 2021, the current ratio improved significantly to 0.94, showing that the company's liquidity position strengthened that year. However, in 2022, there was a slight decrease in the current ratio to 0.61, suggesting that Texas Roadhouse may have had challenges in managing its short-term obligations compared to the previous year.

The most recent data for 2023 shows a further decline in the current ratio to 0.48, indicating a potential liquidity concern for the company. A current ratio below 1 could imply that Texas Roadhouse may have difficulty meeting its short-term financial obligations with its current assets alone.

Overall, the trend in the current ratio for Texas Roadhouse Inc highlights the importance of closely monitoring the company's liquidity position and its ability to manage short-term financial commitments.