Texas Roadhouse Inc (TXRH)

Return on assets (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
Net income (ttm)	US$ in thousands	304,876	292,315	290,855	281,003	269,818	263,007	253,285	256,346	245,294	211,785	188,409	79,376	31,255	54,392	61,693	140,091	174,452	162,098	154,692	154,074
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
ROA		10.91%	11.48%	11.56%	11.35%	10.68%	11.12%	10.91%	10.52%	9.77%	8.67%	7.69%	3.30%	1.34%	2.49%	2.90%	6.82%	8.79%	8.74%	8.28%	7.95%

December 31, 2023 calculation

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

Texas Roadhouse Inc's return on assets (ROA) has shown a generally positive trend over the past few quarters. The ROA increased from 7.95% in March 2019 to 11.56% in June 2023. This suggests that the company has been effectively utilizing its assets to generate profits for shareholders.

Although there were fluctuations in the ROA over time, with some quarters showing lower returns, the overall trend indicates an improvement in the company's asset efficiency. The significant increase in ROA from 3.30% in March 2021 to 11.56% in June 2023 is particularly noteworthy, demonstrating a strong performance in utilizing assets to generate income.

Investors and stakeholders may view this trend positively, as it indicates management's ability to generate profits from the company's assets effectively. However, it is essential to monitor future quarters to ensure this positive trend continues and evaluate the company's long-term asset management capabilities.