Texas Roadhouse Inc (TXRH)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	0	0	—	—	50,000	75,000	75,000	100,000	100,000	190,000	190,000	190,000	190,000	190,000	190,000	190,000	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	915,994	893,975	890,852	973,493
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.05	0.07	0.07	0.09	0.09	0.15	0.15	0.16	0.17	0.17	0.18	0.17	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $0K ÷ ($0K + $1,141,660K)
= 0.00

The debt-to-capital ratio of Texas Roadhouse Inc has shown a decreasing trend over the past few quarters, indicating a reduction in the company's reliance on debt financing in relation to its total capital structure. The ratio was relatively low at 0.05 in December 2022 but has steadily declined to 0.00 in December 2023, signaling that the company may have paid off its debt or successfully increased its equity capital.

The significant drop in the debt-to-capital ratio from 0.17 in March 2020 to 0.00 in December 2023 suggests a deliberate effort by Texas Roadhouse Inc to strengthen its balance sheet by lowering debt levels or enhancing equity. This improved financial position might provide the company with greater financial flexibility and resilience in managing its operations and potential challenges in the future.

It is essential to continue monitoring the company's debt-to-capital ratio over time to assess its ongoing capital structure strategy and financial health. Variations in this ratio could indicate shifts in the company's financing decisions and overall risk profile.