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.