Texas Roadhouse Inc (TXRH)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	349,525	335,796	336,896	326,305	313,533	307,262	293,254	295,851	284,872	241,143	213,695	78,463	15,583	49,490	60,504	161,461	206,880	187,365	178,572	178,993
Revenue (ttm)	US$ in thousands	4,630,470	4,473,440	4,344,988	4,198,398	4,011,603	3,898,774	3,774,419	3,648,597	3,462,567	3,206,025	2,968,267	2,545,904	2,396,677	2,483,926	2,503,230	2,716,633	2,754,780	2,635,454	2,579,392	2,518,801
Pretax margin		7.55%	7.51%	7.75%	7.77%	7.82%	7.88%	7.77%	8.11%	8.23%	7.52%	7.20%	3.08%	0.65%	1.99%	2.42%	5.94%	7.51%	7.11%	6.92%	7.11%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $349,525K ÷ $4,630,470K
= 7.55%

The pretax margin of Texas Roadhouse Inc has shown some fluctuations over the past few quarters. The pretax margin was relatively stable around 7.5% to 8% from December 2019 to June 2022. However, there was a significant decrease in the pretax margin in the first quarter of 2021, dropping to 0.65%, and a partial recovery in the following quarters.

The pretax margin improved to 7.77% in the second quarter of 2023, indicating better cost management or increased revenue generation efficiency. While the pretax margin is an important measure of profitability, it should be analyzed alongside other financial ratios and factors to get a comprehensive view of Texas Roadhouse Inc's financial performance.