Texas Roadhouse Inc (TXRH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.63% | 15.87% | 16.28% | 17.51% | 11.83% |
| Operating profit margin | 9.61% | 7.64% | 7.98% | 8.58% | 0.99% |
| Pretax margin | 9.76% | 7.74% | 8.00% | 8.46% | 0.80% |
| Net profit margin | 8.07% | 6.58% | 6.72% | 7.08% | 1.30% |
Texas Roadhouse Inc has shown improvement in its profitability ratios over the years based on the provided data. The gross profit margin has increased from 11.83% in 2020 to 17.63% in 2024, indicating the company's ability to control the cost of goods sold and generate more revenue from its core operations.
Similarly, the operating profit margin has shown a positive trend, rising from 0.99% in 2020 to 9.61% in 2024. This improvement highlights the company's efficiency in managing its operating expenses and achieving higher profitability from its day-to-day activities.
Furthermore, the pretax margin has also increased from 0.80% in 2020 to 9.76% in 2024, indicating that Texas Roadhouse Inc has been able to generate higher profits before accounting for taxes over the years.
Lastly, the net profit margin has shown a consistent growth, from 1.30% in 2020 to 8.07% in 2024, signaling that the company has been effectively managing its overall expenses and generating a higher percentage of net income compared to its revenue.
Overall, Texas Roadhouse Inc has demonstrated a strong improvement in its profitability ratios, showcasing its ability to enhance operational efficiency and generate higher profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.19% | 12.67% | 12.68% | 11.83% | 1.03% |
| Return on assets (ROA) | 13.59% | 10.91% | 10.68% | 9.77% | 1.34% |
| Return on total capital | 38.12% | 31.03% | 31.78% | 28.16% | 2.81% |
| Return on equity (ROE) | 31.92% | 26.70% | 26.65% | 23.18% | 3.37% |
Texas Roadhouse Inc's profitability ratios show a positive trend over the years.
- The Operating return on assets (Operating ROA) has significantly improved from 1.03% in 2020 to 16.19% in 2024, indicating that the company is effectively generating operating income from its assets.
- The Return on assets (ROA) also demonstrates a favorable growth trajectory, increasing from 1.34% in 2020 to 13.59% in 2024, showcasing the company's ability to generate profits relative to its total assets.
- The Return on total capital has shown remarkable growth, from 2.81% in 2020 to 38.12% in 2024, suggesting the company's efficient use of capital to generate returns for its stakeholders.
- The Return on equity (ROE) has steadily increased from 3.37% in 2020 to 31.92% in 2024, reflecting strong profitability relative to shareholders' equity.
Overall, Texas Roadhouse Inc has demonstrated consistent improvement in its profitability ratios, indicating effective management of assets and capital to generate returns for its investors.