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Texas Roadhouse Financial Strength

: 6 (As of Jun. 2021)
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Texas Roadhouse has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Texas Roadhouse's Interest Coverage for the quarter that ended in Jun. 2021 was 92.05. Texas Roadhouse's debt to revenue ratio for the quarter that ended in Jun. 2021 was 0.22. As of today, Texas Roadhouse's Altman Z-Score is 4.84.


Competitive Comparison

For the Restaurants industry, Texas Roadhouse's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Texas Roadhouse Financial Strength Distribution

For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Financial Strength distribution charts can be found below:

* The bar in red indicates where Texas Roadhouse's Financial Strength falls into.



Texas Roadhouse Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Texas Roadhouse's Interest Expense for the months ended in Jun. 2021 was $-1 Mil. Its Operating Income for the months ended in Jun. 2021 was $90 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2021 was $780 Mil.

Texas Roadhouse's Interest Coverage for the quarter that ended in Jun. 2021 is

Interest Coverage=-1*Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*89.745/-0.975
=92.05

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Texas Roadhouse's Debt to Revenue Ratio for the quarter that ended in Jun. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(20.578 + 780.443) / 3595.152
=0.22

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Texas Roadhouse has a Z-score of 4.84, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.84 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Texas Roadhouse  (NAS:TXRH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Texas Roadhouse has the Financial Strength Rank of 6.


Texas Roadhouse Financial Strength Related Terms

Thank you for viewing the detailed overview of Texas Roadhouse's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Texas Roadhouse Business Description

Texas Roadhouse logo
Industry
Consumer Cyclical » Restaurants NAICS : 722511 SIC : 5812
Traded in Other Exchanges
Address
6040 Dutchmans Lane, Louisville, KY, USA, 40205
Texas Roadhouse Inc is a restaurant company operating predominately in the casual dining segment. The company has over 500 restaurants in over 45 states and a few foreign countries. Revenue from external customers is derived principally from food and beverage sales.
Executives
Taylor Wayne Kent director, officer: Chairman, CEO, President 6040 DUTCHMANS LANE SUITE 200 LOUISVILLE KY 40205
Jacobsen S. Chris officer: Chief Marketing Officer 6040 DUTCHMANS LANE LOUISVILLE KY 40205
Widmer Kathy director C/O ELIZABETH ARDEN, INC. 2400 S.W. 145 AVENUE MIRAMAR FL 33027
Zarley James R director 4360 PARK TERRACE SUITE 100 WESTLAKE VILLAGE CA 91361
Robinson Tonya officer: Chief Financial Officer 6040 DUTCHMANS LANE SUITE 400 LOUISVILLE KY 40205
Crawford Michael Anthony director C/O HALL OF FAME RESORT & ENTERTAIN CO 2626 FULTON AVE NW CANTON OH 44718
Thompson Douglas W. officer: Chief Operating Officer 6040 DUTCHMANS LANE LOUISVILLE KY 40205
Moore Gregory N director 6040 DUTCHMANS LANE SUITE 200 LOUISVILLE KY 40205
Warfield Curtis director 6040 DUTCHMANS LANE LOUISVILLE KY 40205
Colosi Scott Matthew officer: President 6040 DUTCHMANS LANE SUITE 200 LOUISVILLE KY 40205
Catlett Celia officer: General Counsel 6040 DUTCHMANS LANE LOUISVILLE KY 40205
Parker James F director C/O SOUTHWEST AIRLINES CO P O BOX 36611 DALLAS TX 75235
Ramsey James director 8902 ADRIENNE COURT LOUISVILLE KY 40245
Cooper George Price Iv officer: Chief Financial Officer 6040 DUTCHMANS LANE LOUISVILLE KY 40205
Ortiz Steven L officer: Chief Operating Officer 6040 DUTCHMANS LANE SUITE 200 LOUISVILLE KY 40205

Texas Roadhouse Headlines

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