Texas Roadhouse Inc (TXRH)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 433,592 304,876 269,818 245,294 31,255
Revenue US$ in thousands 5,373,330 4,631,670 4,014,920 3,463,950 2,398,120
Net profit margin 8.07% 6.58% 6.72% 7.08% 1.30%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $433,592K ÷ $5,373,330K
= 8.07%

The net profit margin of Texas Roadhouse Inc has exhibited a positive trend over the past five years, increasing from 1.30% in December 31, 2020, to 8.07% in December 31, 2024. This indicates an improvement in the company's ability to convert revenues into profit after accounting for all expenses. The consistent growth in net profit margin reflects the company's effective cost management strategies and operational efficiency. It is important for investors to monitor this metric as it provides insights into the company's profitability and overall financial health.