Texas Roadhouse Inc (TXRH)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 349,525 | 313,533 | 284,872 | 15,583 | 206,849 |
| Revenue | US$ in thousands | 4,627,390 | 4,009,110 | 3,460,580 | 2,394,680 | 2,750,280 |
| Pretax margin | 7.55% | 7.82% | 8.23% | 0.65% | 7.52% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $349,525K ÷ $4,627,390K
= 7.55%
The pretax margin of Texas Roadhouse Inc has shown some variation over the past five years, ranging from a low of 0.65% in 2020 to a high of 8.23% in 2021. In 2023, the pretax margin stood at 7.55%, slightly lower than the previous year's 7.82%. This indicates that the company is generating a pretax profit of 7.55 cents for every dollar of revenue earned in 2023.
The dip in pretax margin in 2020 may have been influenced by external factors such as the impact of the COVID-19 pandemic on the restaurant industry. The subsequent recovery and improvement in 2021 suggests that the company managed to navigate through challenges and improve its profitability.
Overall, a consistent and healthy pretax margin indicates the company's ability to effectively manage expenses and generate profits before accounting for taxes, which is crucial for sustained growth and financial stability. It is also important for investors to monitor this ratio over time to gauge the company's operational efficiency and profitability trends.
Peer comparison
Dec 31, 2023