Texas Roadhouse Inc (TXRH)

Financial leverage 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
Total assets US$ in thousands 2,793,380 2,546,340 2,514,990 2,474,860 2,525,660 2,365,050 2,321,720 2,437,320 2,511,950 2,442,550 2,448,940 2,406,730 2,325,160 2,188,010 2,130,480 2,054,700 1,983,560 1,855,560 1,868,850 1,937,950
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
Financial leverage ratio 2.45 2.31 2.32 2.35 2.49 2.42 2.47 2.39 2.37 2.29 2.34 2.42 2.51 2.42 2.45 2.29 2.17 2.08 2.10 1.99

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 shown a fluctuating trend over the past five years, with values ranging from 1.99 to 2.51. The ratio measures the company's use of debt to finance its operations and indicates the proportion of debt in its capital structure relative to equity.

The ratio increased steadily from 1.99 in March 2019 to a peak of 2.51 in December 2020, suggesting a higher reliance on debt during this period. Subsequently, there was some fluctuation in the ratio, reaching a low of 2.08 in September 2019 and then increasing to 2.45 by December 2023.

Overall, the ratio has remained above 2 for the majority of the period, indicating that Texas Roadhouse Inc has maintained a relatively high level of financial leverage, which could imply higher financial risk but also potential for increased returns for shareholders. It is important for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively.