Texas Roadhouse Inc (TXRH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 353,989 | 320,197 | 297,192 | 23,844 | 212,023 |
| Long-term debt | US$ in thousands | 0 | 50,000 | 100,000 | 190,000 | — |
| Total stockholders’ equity | US$ in thousands | 1,141,660 | 1,012,640 | 1,058,120 | 927,505 | 915,994 |
| Return on total capital | 31.01% | 30.13% | 25.66% | 2.13% | 23.15% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $353,989K ÷ ($0K + $1,141,660K)
= 31.01%
Texas Roadhouse Inc's return on total capital has shown a fluctuating trend over the past five years, ranging from a low of 2.13% in 2020 to a high of 31.01% in 2023. The significant increase from 2020 to 2021 indicates a notable improvement in the company's ability to generate profits relative to its total capital employed. The subsequent slight decrease in 2022 followed by a further increase in 2023 suggests ongoing efficiency in utilizing its capital resources to generate returns for investors. Overall, the company has demonstrated an above-average return on total capital, reflecting a strong performance in utilizing its capital effectively to generate profits.
Peer comparison
Dec 31, 2023