Texas Roadhouse Inc (TXRH)

Financial leverage ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total assets US$ in thousands 2,793,380 2,525,660 2,511,950 2,325,160 1,983,560
Total stockholders’ equity US$ in thousands 1,141,660 1,012,640 1,058,120 927,505 915,994
Financial leverage ratio 2.45 2.49 2.37 2.51 2.17

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,793,380K ÷ $1,141,660K
= 2.45

The financial leverage ratio of Texas Roadhouse Inc has been fluctuating over the past five years. The ratio decreased from 2.17 in 2019 to 2.51 in 2020, suggesting an increase in financial leverage. Subsequently, the ratio decreased to 2.37 in 2021, followed by a slight increase to 2.49 in 2022. In 2023, the ratio further decreased to 2.45.

Overall, Texas Roadhouse Inc's financial leverage ratio has shown some variability, indicating changes in the company's capital structure and degree of leverage over the years. While the ratio is slightly lower in 2023 compared to 2022, further analysis would be required to assess the impact of this leverage on the company's financial stability and performance.