Texas Roadhouse Inc (TXRH)

Texas Roadhouse Inc has consistently maintained a strong solvency position as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which stood at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not relied heavily on debt to finance its operations and investments, thus minimizing its financial risk.

Furthermore, the financial leverage ratio, which provides a measure of the company's use of debt in relation to its equity, has also demonstrated stability over the same period, ranging from 2.35 to 2.51. Although this ratio indicates that Texas Roadhouse Inc has a moderate level of financial leverage, it remains within reasonable bounds and does not pose a significant concern regarding the company's ability to meet its debt obligations.

Overall, the solvency ratios suggest that Texas Roadhouse Inc has maintained a prudent approach to managing its capital structure, striking a balance between leveraging debt for growth opportunities and maintaining a solid financial foundation.

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Coverage ratios

The interest coverage ratio of Texas Roadhouse Inc has shown significant fluctuations over the past few years. In December 31, 2020, the interest coverage ratio was 6.38, indicating that the company's operating income was able to cover its interest expenses almost 6 times over.

By December 31, 2021, the interest coverage ratio increased substantially to 81.33, signifying a significant improvement in the company's ability to cover its interest payments. This could indicate better profitability or decreased interest expenses relative to operating income.

In December 31, 2022, the interest coverage ratio skyrocketed to 2,595.14, reflecting an exceptional increase in the company's financial health and ability to meet its interest obligations. This extremely high ratio suggests the company has a very strong ability to cover its interest expenses with its operating income.

However, by December 31, 2023, the interest coverage ratio declined to 708.53, although it remained at a relatively high level. This could be attributed to changes in the company's operating income or increased interest expenses.

Lastly, by December 31, 2024, the interest coverage ratio decreased further to 76.43, indicating a decrease compared to the previous year. This could imply that the company's ability to cover its interest payments with its operating income weakened slightly.

Overall, the interest coverage ratio of Texas Roadhouse Inc has shown fluctuations, with some years demonstrating exceptional strength in its ability to cover interest expenses with operating income, while in other years, there were decreases in the ratio. Further analysis of the company's financial statements and business operations could provide more insights into these fluctuations.