Texas Roadhouse Inc (TXRH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 517,745 | 354,264 | 321,797 | 297,926 | 26,107 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,358,350 | 1,141,660 | 1,012,640 | 1,058,120 | 927,505 |
| Return on total capital | 38.12% | 31.03% | 31.78% | 28.16% | 2.81% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $517,745K ÷ ($—K + $1,358,350K)
= 38.12%
Texas Roadhouse Inc's return on total capital has shown a significant improvement over the years, increasing from 2.81% in December 2020 to 38.12% in December 2024. This indicates that the company has been more effective in generating profits from its total capital employed in its operations. The consistent upward trend in return on total capital reflects the company's efficient utilization of resources and overall financial performance. Investors and stakeholders may view this trend positively as it suggests that Texas Roadhouse is becoming more profitable and achieving better returns on its invested capital over time.
Peer comparison
Dec 31, 2024