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.