Texas Roadhouse Inc (TXRH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,141,660	1,012,640	1,058,120	927,505	915,994
ROE		26.70%	26.65%	23.18%	3.37%	19.05%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $304,876K ÷ $1,141,660K
= 26.70%

Texas Roadhouse Inc's Return on Equity (ROE) has shown a positive trend over the past five years, increasing from 19.05% in 2019 to 26.70% in 2023. This upward trajectory indicates that the company has been effectively utilizing shareholder equity to generate profits. The significant improvement in ROE from 2020 to 2021, where it jumped from 3.37% to 23.18%, suggests a marked enhancement in the company's profitability and efficiency in managing its assets and liabilities. Overall, the consistent and relatively high ROE levels in recent years reflect Texas Roadhouse's ability to deliver strong returns to its shareholders through efficient operations and effective financial management.