Texas Roadhouse Inc (TXRH)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	523,947	469,221	440,211	387,798	355,469	340,575	342,778	332,412	320,904	315,795	301,462	304,878	296,817	254,691	228,656	91,503	26,457	56,787	66,040	167,047
Interest expense (ttm)	US$ in thousands	0	254	750	1,746	2,080	2,579	2,168	1,567	1,630	1,501	2,020	2,600	3,663	4,529	5,427	5,482	4,091	2,613	1,192	853
Interest coverage		—	1,847.33	586.95	222.11	170.90	132.06	158.11	212.13	196.87	210.39	149.24	117.26	81.03	56.24	42.13	16.69	6.47	21.73	55.40	195.83

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $523,947K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Texas Roadhouse Inc's interest coverage ratio has shown significant fluctuations over the reporting periods.

Starting from a high of 195.83 on March 31, 2020, the ratio has dropped significantly to 6.47 on December 31, 2020, indicating a potential strain on the company's ability to cover its interest expenses with its earnings. This downward trend continued through the first half of 2021, with the interest coverage ratio ranging between 16.69 and 42.13.

However, from September 30, 2021, onwards, the interest coverage ratio began to improve, showing more stability and reaching higher levels. By December 31, 2023, the ratio had increased to 170.90, indicating a stronger ability to cover interest expenses.

The ratio experienced a substantial spike to 586.95 on June 30, 2024, and a sharp increase to 1,847.33 on September 30, 2024, suggesting a significant improvement in the company's ability to cover its interest obligations.

It is worth noting that the data for December 31, 2024, is not available (marked as "—"). Overall, the interest coverage ratio for Texas Roadhouse Inc has shown fluctuations but seems to have improved significantly in recent periods, indicating a potentially healthier financial position in terms of meeting interest payments.