Texas Roadhouse Inc (TXRH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,358,350 | 1,141,660 | 1,012,640 | 1,058,120 | 927,505 |
| ROE | 31.92% | 26.70% | 26.65% | 23.18% | 3.37% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $433,592K ÷ $1,358,350K
= 31.92%
Texas Roadhouse Inc's return on equity (ROE) has shown a positive trend over the past five years, starting at a modest 3.37% on December 31, 2020, and steadily increasing to 31.92% by December 31, 2024. This indicates that the company has been effectively utilizing its equity to generate profits for shareholders.
The significant improvement in ROE from 2020 to 2024 reflects the company's ability to generate higher profits relative to its equity base, which is a positive indication of management's efficiency in utilizing the shareholders' investment.
The consistently increasing ROE demonstrates Texas Roadhouse Inc's ability to optimize its financial resources and generate higher returns for its investors over time, which could be attributed to effective cost management, revenue growth, and operational efficiency.
Overall, the improving trend in ROE for Texas Roadhouse Inc implies that the company is becoming more profitable and efficient in generating returns for its shareholders, which may be appealing to potential investors looking for companies with solid financial performance.
Peer comparison
Dec 31, 2024