Texas Roadhouse Inc (TXRH)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	304,876	269,818	245,294	31,255	174,452
Total assets	US$ in thousands	2,793,380	2,525,660	2,511,950	2,325,160	1,983,560
ROA		10.91%	10.68%	9.77%	1.34%	8.79%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $304,876K ÷ $2,793,380K
= 10.91%

The return on assets (ROA) for Texas Roadhouse Inc has shown a generally positive trend over the past five years. In 2023, the ROA increased to 10.91% from 10.68% in 2022, indicating that the company generated $0.1091 in net income for every dollar of assets it owns. This improvement suggests that the company is becoming more efficient in generating profits from its assets.

Comparing the current ROA to earlier years, we see a significant improvement from 2020, when the ROA was only 1.34%. This indicates that Texas Roadhouse Inc has made significant strides in utilizing its assets more effectively to generate earnings.

Overall, the increasing trend in ROA over the past five years suggests that Texas Roadhouse Inc has been successful in improving its profitability relative to its asset base. This is a positive indicator of the company's operational efficiency and financial performance.