Texas Roadhouse Inc (TXRH)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	353,989	339,069	340,498	331,004	320,197	316,183	302,593	306,403	297,192	252,749	226,027	88,981	23,844	56,859	66,767	167,368	212,023	191,819	182,379	183,363
Interest expense (ttm)	US$ in thousands	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	1,538	1,745	1,832	1,424
Interest coverage		170.19	131.47	157.06	211.23	196.44	210.65	149.80	117.85	81.13	55.81	41.65	16.23	5.83	21.76	56.01	196.21	137.86	109.92	99.55	128.77

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $353,989K ÷ $2,080K
= 170.19

The interest coverage ratio for Texas Roadhouse Inc has shown significant fluctuations over the periods indicated. The ratio peaked at 211.23 in March 2023, indicating the company's strong ability to cover its interest expenses with operating income. However, this was followed by a decline in the ratio in the subsequent quarters.

Overall, the interest coverage ratio has been relatively high, indicating a robust financial position and ability to meet interest obligations comfortably. It is important to note the declining trend in recent quarters, which may warrant further analysis to understand the underlying reasons for the decrease.

It is evident that Texas Roadhouse Inc has had varying levels of profitability and efficiency in managing its interest expenses over the periods analyzed, highlighting the importance of consistent monitoring and financial management practices to ensure sustainable financial health.