Texas Roadhouse Inc (TXRH)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	104,246	173,861	335,645	363,155	107,879
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	175,474	150,264	161,358	98,418	99,305
Total current liabilities	US$ in thousands	745,434	652,010	602,144	506,318	417,220
Quick ratio		0.38	0.50	0.83	0.91	0.50

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($104,246K + $—K + $175,474K) ÷ $745,434K
= 0.38

The quick ratio of Texas Roadhouse Inc has exhibited a declining trend over the past five years, indicating a potential cause for concern. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory.

In 2023, the quick ratio stood at 0.38, a decrease from the previous year's ratio of 0.50. This suggests that the company may have difficulties in meeting its current liabilities using its quick assets alone. The significant drop in the quick ratio from 2021 to 2023 is notable and may indicate liquidity challenges or inefficient utilization of assets.

Comparing the current ratio to the industry average and competitors' quick ratios can provide further insights into Texas Roadhouse Inc's liquidity position. A sustained low quick ratio over time may signal a need for the company to reassess its working capital management strategies and potentially improve its cash flow management to enhance liquidity and financial stability.