Texas Roadhouse Inc (TXRH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.07 | 0.07 | 0.09 | 0.09 | 0.15 | 0.15 | 0.16 | 0.17 | 0.17 | 0.18 | 0.17 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.08 | 0.10 | 0.09 | 0.18 | 0.18 | 0.19 | 0.20 | 0.21 | 0.22 | 0.21 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Texas Roadhouse Inc's solvency ratios show a stable and conservative financial position. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained low and even decreased over time, indicating the company has minimal debt compared to its assets, capital, and equity. The financial leverage ratio has fluctuated slightly but generally stayed within a moderate range, indicating the company's reliance on debt financing is reasonable. Overall, these solvency ratios suggest that Texas Roadhouse Inc has a strong financial position with limited financial risk stemming from debt.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt with its earnings. A higher interest coverage ratio indicates a stronger ability to fulfill interest obligations.
Analyzing the interest coverage of Texas Roadhouse Inc over the past few quarters, we observe fluctuations in the ratio. The interest coverage ratio has shown a generally positive trend from the end of 2019 to the end of 2023. For example, at the end of 2019, the ratio was 128.77, indicating robust coverage of interest payments.
In the most recent quarter, as of December 31, 2023, the interest coverage ratio stands at 170.19, which is a notable improvement from the previous quarters. This suggests that the company's earnings are more than sufficient to cover its interest expenses, reflecting a healthy financial position.
Overall, Texas Roadhouse Inc's interest coverage ratio has exhibited variability but has generally been on an upward trajectory, indicating an improving ability to meet its interest obligations with earnings. It is essential to continue monitoring this ratio in future periods to ensure the company's financial stability and debt servicing capability.