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Texas Roadhouse Altman Z-Score

: 4.84 (As of Today)
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Good Sign:

Altman Z-score of 4.84 is strong.

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

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Texas Roadhouse's Altman Z-Score or its related term are showing as below:

NAS:TXRH' s Altman Z-Score Range Over the Past 10 Years
Min: 1.67   Med: 6.15   Max: 13.56
Current: 4.84

1.67
13.56

During the past 13 years, Texas Roadhouse's highest Altman Z-Score was 13.56. The lowest was 1.67. And the median was 6.15.


Texas Roadhouse Altman Z-Score Historical Data

The historical data trend for Texas Roadhouse's Altman Z-Score can be seen below:

* 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.

* Premium members only.

Texas Roadhouse Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.57 7.40 7.77 4.42 3.90

Texas Roadhouse Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.49 3.71 3.90 4.58 4.99

Competitive Comparison

For the Restaurants industry, Texas Roadhouse's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Texas Roadhouse's Altman Z-Score falls into.



Texas Roadhouse Altman Z-Score Calculation

Altman 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.

Texas Roadhouse's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0416+1.4*0.3649+3.3*0.0923+0.6*4.6021+1.0*1.2122
=4.84

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2021:
Total Assets was $2,449 Mil.
Total Current Assets was $582 Mil.
Total Current Liabilities was $480 Mil.
Retained Earnings was $894 Mil.
Pre-Tax Income was 88.992 + 79.25 + 19.003 + 33.475 = $221 Mil.
Interest Expense was -0.975 + -1.46 + -1.49 + -1.502 = $-5 Mil.
Revenue was 898.788 + 800.629 + 637.989 + 631.185 = $2,969 Mil.
Market Cap (Today) was $6,380 Mil.
Total Liabilities was $1,386 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(581.773 - 479.808)/2448.945
=0.0416

X2=Retained Earnings/Total Assets
=893.613/2448.945
=0.3649

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(220.72 - -5.427)/2448.945
=0.0923

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=6379.704/1386.262
=4.6021

X5=Revenue/Total Assets
=2968.591/2448.945
=1.2122

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Texas Roadhouse has a Altman Z-Score of 4.84 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Texas Roadhouse  (NAS:TXRH) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Texas Roadhouse Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Texas Roadhouse's Altman Z-Score 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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