Texas Roadhouse Inc (TXRH)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	353,989	339,069	340,498	331,004	320,197	316,183	302,593	306,403	297,192	252,749	226,027	88,981	23,844	56,859	66,767	167,368	212,023	191,819	182,379	183,363
Total assets	US$ in thousands	2,793,380	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	1,983,560	1,855,560	1,868,850	1,937,950
Operating ROA		12.67%	13.32%	13.54%	13.37%	12.68%	13.37%	13.03%	12.57%	11.83%	10.35%	9.23%	3.70%	1.03%	2.60%	3.13%	8.15%	10.69%	10.34%	9.76%	9.46%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $353,989K ÷ $2,793,380K
= 12.67%

Texas Roadhouse Inc's operating return on assets (operating ROA) has shown a positive trend over the past 20 quarters, with fluctuations along the way. The operating ROA ranged from 1.03% to 13.54% during this period.

In recent quarters, the operating ROA has been consistently above 10%, indicating that the company is effectively generating operating income relative to its total assets. This suggests that management is using the company's assets efficiently to generate profits from its core operations.

It is worth noting that there was a significant improvement in operating ROA from the first quarter of 2021, where it was only 3.70%, to the most recent quarter where it reached 13.54%. This suggests that the company has made operational improvements and/or strategic decisions that have positively impacted its profitability and asset utilization.

Overall, the upward trend in operating ROA demonstrates that Texas Roadhouse Inc has been able to enhance its operational efficiency and profitability over the analyzed period, which could be a positive signal for investors and stakeholders.