Texas Roadhouse Inc (TXRH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.19% | 10.57% | 11.52% | 55.85% | 59.23% |
| Operating profit margin | 7.65% | 7.99% | 8.59% | 1.00% | 7.71% |
| Pretax margin | 7.55% | 7.82% | 8.23% | 0.65% | 7.52% |
| Net profit margin | 6.59% | 6.73% | 7.09% | 1.31% | 6.34% |
Over the past five years, Texas Roadhouse Inc's profitability ratios have shown varying trends. The gross profit margin has experienced a slight decrease from 11.52% in 2021 to 10.19% in 2023, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown a downward trend, declining from 8.59% in 2021 to 7.65% in 2023, suggesting a decrease in the percentage of revenue remaining after deducting operating expenses.
The pretax margin has followed a similar pattern, declining from 8.23% in 2021 to 7.55% in 2023. This indicates a decrease in the percentage of revenue remaining after accounting for all operating expenses and before taxes.
Despite these declines, the net profit margin has shown more stability, with a slight decrease from 7.09% in 2021 to 6.59% in 2023. This metric reflects the percentage of revenue that remains as net income after accounting for all expenses, including taxes.
Overall, while Texas Roadhouse Inc's profitability ratios have shown some downward trends in recent years, the company has been able to maintain a decent level of profitability, as evidenced by the positive net profit margins across the period analyzed.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.67% | 12.68% | 11.83% | 1.03% | 10.69% |
| Return on assets (ROA) | 10.91% | 10.68% | 9.77% | 1.34% | 8.79% |
| Return on total capital | 31.01% | 30.13% | 25.66% | 2.13% | 23.15% |
| Return on equity (ROE) | 26.70% | 26.65% | 23.18% | 3.37% | 19.05% |
Texas Roadhouse Inc's profitability ratios have shown positive trends over the past five years.
Operating return on assets (Operating ROA) has remained relatively stable around 12% over the last three years, indicating the company's ability to generate operating profits from its assets consistently.
Return on assets (ROA) has also shown improvement, reaching 10.91% in 2023 from 8.79% in 2019. This metric indicates that the company is becoming more efficient in generating profits from its total assets.
Return on total capital has significantly improved, reaching 31.01% in 2023 from 23.15% in 2019, reflecting the company's enhanced ability to generate returns on both debt and equity investments.
Return on equity (ROE) has steadily increased, reaching 26.70% in 2023 from 19.05% in 2019. This indicates that the company is effectively utilizing shareholder's equity to generate profits.
Overall, the profitability ratios of Texas Roadhouse Inc demonstrate a positive trend, with consistent improvement in operational efficiency and returns to both asset and capital providers.