Texas Roadhouse Inc (TXRH)

Return on assets (ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 433,592 390,189 369,565 331,695 304,876 292,315 290,855 281,003 269,818 263,007 253,285 256,346 245,294 211,785 188,409 79,376 31,255 54,392 61,693 140,091
Total assets US$ in thousands 3,190,780 2,913,820 2,861,910 2,830,400 3,058,920 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
ROA 13.59% 13.39% 12.91% 11.72% 9.97% 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%

December 31, 2024 calculation

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

The return on assets (ROA) of Texas Roadhouse Inc has shown a fluctuating trend over the past few years, ranging from 1.34% in December 2020 to 13.59% in December 2024. The ROA gradually increased from the low points seen in 2020 to reach its peak in December 2024. This indicates that Texas Roadhouse Inc has been able to generate a higher level of profit relative to its total assets in recent years.

The improving ROA suggests that the company has been effectively utilizing its assets to generate profits. This could be attributed to efficient cost management, increased revenue generation, or improved asset utilization. A higher ROA signifies better financial performance and efficiency in terms of using its assets to generate profits.

Investors and stakeholders might view the increasing trend in ROA positively, as it indicates the company's ability to generate more profits relative to its total assets. However, it's important to monitor this metric over time to ensure continued efficiency in asset utilization and sustainable profitability for Texas Roadhouse Inc.