Texas Roadhouse Inc (TXRH)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 245,225 | 104,246 | 173,861 | 335,645 | 363,155 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 828,130 | 745,434 | 652,010 | 602,144 | 506,318 |
| Quick ratio | 0.30 | 0.14 | 0.27 | 0.56 | 0.72 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($245,225K
+ $—K
+ $—K)
÷ $828,130K
= 0.30
The quick ratio of Texas Roadhouse Inc has shown a declining trend over the years, indicating potential liquidity concerns. As of December 31, 2020, the quick ratio stood at 0.72, reflecting a relatively healthy liquidity position. However, by December 31, 2024, the quick ratio had decreased to 0.30, suggesting a decrease in the company's ability to meet its short-term obligations with its most liquid assets.
The decreasing trend in the quick ratio may raise concerns about the company's ability to cover its current liabilities without relying on inventory, which may not be easily convertible to cash. A quick ratio below 1.0 indicates that the company may struggle to meet its short-term obligations using its most liquid assets alone.
It is essential for investors and stakeholders to monitor Texas Roadhouse Inc's liquidity position closely, as a low quick ratio could potentially signal financial distress or inefficiencies in managing short-term obligations. Further analysis of the company's cash flows and working capital management may provide insights into the underlying factors influencing the decreasing quick ratio trend.
Peer comparison
Dec 31, 2024