The Cheesecake Factory (CAKE)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 25.75 | 27.85 | 27.87 | 45.39 | 38.89 | |
| DOH | days | 14.17 | 13.11 | 13.10 | 8.04 | 9.39 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 25.75
= 14.17
The days of inventory on hand (DOH) for The Cheesecake Factory has shown some fluctuations over the past five years. In December 2020, the company had an inventory turnover rate of 9.39 days, which decreased to 8.04 days by December 2021, reflecting a more efficient management of inventory. However, the DOH increased significantly in the subsequent years, reaching 13.10 days by December 2022, 13.11 days by December 2023, and further rising to 14.17 days by December 2024.
The increase in days of inventory on hand from 2021 to 2024 could indicate a potential buildup of inventory or a slower turnover rate of products. This could be due to various factors such as changes in consumer demand, supply chain disruptions, or inventory management practices.
Overall, monitoring the trend of the days of inventory on hand is crucial for evaluating the efficiency and effectiveness of The Cheesecake Factory's inventory management processes and identifying potential areas for improvement to optimize working capital and profitability.
Peer comparison
Dec 31, 2024