Texas Roadhouse Inc (TXRH)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	356,474	181,486	233,285	268,718	396,841	277,378	280,944	425,987	563,525	537,915	581,773	577,618	510,651	399,541	359,377	302,574	247,899	164,662	217,428	322,998
Total current liabilities	US$ in thousands	745,434	561,426	571,983	588,098	652,010	515,693	528,459	541,774	602,144	443,854	479,808	508,164	506,318	396,402	402,242	310,861	417,220	332,272	359,065	362,450
Current ratio		0.48	0.32	0.41	0.46	0.61	0.54	0.53	0.79	0.94	1.21	1.21	1.14	1.01	1.01	0.89	0.97	0.59	0.50	0.61	0.89

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 shown fluctuations over the reporting periods from December 2019 to December 2023. The current ratio measures a company's ability to meet its short-term obligations with its current assets, and a ratio below 1 indicates potential liquidity issues.

The current ratio was at its lowest in September 2023 at 0.32, indicating a potential strain on the company's ability to cover its short-term liabilities with its current assets. However, the ratio improved in subsequent quarters, reaching a peak of 1.21 in September 2021 and again in June 2021. This improvement suggests that the company was in a stronger position to meet its short-term obligations during those periods.

Most recently, in December 2023, the current ratio decreased to 0.48. This decline could raise concerns about the company's short-term liquidity position. It is essential for Texas Roadhouse Inc to closely monitor its current assets and liabilities and take appropriate measures to ensure it maintains a healthy current ratio to meet its short-term financial obligations.