Texas Roadhouse Inc (TXRH)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	516,519	471,407	443,243	395,839	363,656	339,069	346,971	343,211	332,404	328,390	308,327	306,403	297,192	252,749	226,027	88,981	23,844	56,859	66,767	167,368
Total assets	US$ in thousands	3,190,780	2,913,820	2,861,910	2,830,400	3,058,920	2,546,340	2,514,990	2,474,860	2,525,660	2,365,050	2,321,720	2,437,320	2,511,950	2,442,550	2,448,940	2,406,730	2,325,160	2,188,010	2,130,480	2,054,700
Operating ROA		16.19%	16.18%	15.49%	13.99%	11.89%	13.32%	13.80%	13.87%	13.16%	13.89%	13.28%	12.57%	11.83%	10.35%	9.23%	3.70%	1.03%	2.60%	3.13%	8.15%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $516,519K ÷ $3,190,780K
= 16.19%

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income relative to its total assets.

In the case of Texas Roadhouse Inc, the Operating ROA has shown fluctuating trends over the past few years. Starting from March 31, 2020, with an Operating ROA of 8.15%, the ratio decreased steadily over the next few quarters, reaching a low of 1.03% on December 31, 2020.

However, from March 31, 2021, there was a noticeable improvement in the Operating ROA, which continued to increase consistently until December 31, 2024, reaching a peak of 16.19%. This upward trend indicates that Texas Roadhouse Inc became more efficient in generating operating income in relation to its total assets during this period.

The consistent improvement in Operating ROA from 2021 to 2024 suggests that the company has been effectively utilizing its assets to generate operating profits. A higher Operating ROA indicates that Texas Roadhouse Inc is efficient in managing its operations and assets to create value for its stakeholders.

Overall, the increasing trend in Operating ROA showcases Texas Roadhouse Inc's ability to enhance operational efficiency and profitability over the analyzed period.