Texas Roadhouse Inc (TXRH)

Return on assets (ROA)

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
Total assets US$ in thousands 3,190,780 2,793,380 2,525,660 2,511,950 2,325,160
ROA 13.59% 10.91% 10.68% 9.77% 1.34%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $433,592K ÷ $3,190,780K
= 13.59%

Texas Roadhouse Inc's return on assets (ROA) has shown a significant upward trend over the past five years. From 1.34% in December 2020, the ROA increased to 13.59% by December 2024. This indicates that the company has been increasingly efficient in generating profits from its assets over the years. The consistent improvement in ROA suggests effective management of assets and profitability growth, which is a positive indicator of the company's operational performance and financial health. The consistent growth in ROA demonstrates the company's ability to utilize its assets efficiently to generate higher returns for its investors.