Texas Roadhouse Inc (TXRH)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,358,350	1,308,290	1,262,640	1,207,190	1,141,660	1,103,960	1,082,980	1,055,250	1,012,640	977,575	938,892	1,019,780	1,058,120	1,065,170	1,046,840	993,621	927,505	902,916	868,021	896,292
ROE		31.92%	29.82%	29.27%	27.48%	26.70%	26.48%	26.86%	26.63%	26.65%	26.90%	26.98%	25.14%	23.18%	19.88%	18.00%	7.99%	3.37%	6.02%	7.11%	15.63%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $433,592K ÷ $1,358,350K
= 31.92%

Texas Roadhouse Inc has shown a fluctuating trend in its return on equity (ROE) over the past few years. The ROE was 15.63% as of March 31, 2020, indicating a moderate return generated on shareholders' equity. However, there was a decline in ROE to 3.37% by December 31, 2020, suggesting a significant drop in the profitability generated from equity.

Subsequently, there was a gradual improvement in ROE, reaching 26.96% by June 30, 2022, demonstrating a strong comeback in generating returns for shareholders. The company maintained this positive trend, with ROE continuing to increase to 31.92% by December 31, 2024, indicating a robust return on equity.

Overall, Texas Roadhouse Inc has shown resilience in improving its ROE over the years, with a notable increase in profitability generated from shareholders' equity. This trend suggests effective management of assets and efficient utilization of equity to generate returns for investors.