Texas Roadhouse Inc (TXRH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,190,780 | 2,793,380 | 2,525,660 | 2,511,950 | 2,325,160 |
| Total stockholders’ equity | US$ in thousands | 1,358,350 | 1,141,660 | 1,012,640 | 1,058,120 | 927,505 |
| Financial leverage ratio | 2.35 | 2.45 | 2.49 | 2.37 | 2.51 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,190,780K ÷ $1,358,350K
= 2.35
The financial leverage ratio of Texas Roadhouse Inc has shown a fluctuating trend over the past five years. It was 2.51 as of December 31, 2020, and decreased to 2.37 by the end of 2021. Subsequently, the ratio increased slightly to 2.49 in 2022, then decreased to 2.45 in 2023, and further dropped to 2.35 by December 31, 2024.
This indicates that the company's reliance on debt financing in relation to its equity has been varying over the years. A lower financial leverage ratio suggests a lower level of financial risk, as the company is using less debt to finance its operations. However, it's important to consider the reasons behind these fluctuations and analyze how they may impact the company's overall financial health and performance.
Peer comparison
Dec 31, 2024