The Cheesecake Factory (CAKE)

Days of inventory on hand (DOH)

		Jan 31, 2025	Dec 31, 2024	Jan 31, 2024	Dec 31, 2023	Jan 31, 2023
Inventory turnover		12.49	25.75	35.23	27.85	36.41
DOH	days	29.22	14.17	10.36	13.11	10.02

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 12.49
= 29.22

The days of inventory on hand (DOH) metric for The Cheesecake Factory has shown variability over the past few years. In January 2023, the company held inventory for an average of 10.02 days, indicating a relatively efficient turnover of inventory. However, by December 2023, the DOH had increased to 13.11 days, suggesting a slower rate of inventory turnover.

The trend continued into January 2024, with the DOH slightly increasing to 10.36 days. By December 2024, the DOH had risen significantly to 14.17 days, reflecting a prolonged time period for the company to sell its inventory. This may indicate potential issues such as overstocking or slower sales.

The most notable change occurred by January 2025, where the DOH spiked to 29.22 days, more than doubling from the previous year. This significant increase may raise concerns about inventory management efficiency and the potential risk of inventory obsolescence.

Overall, the fluctuating trend in The Cheesecake Factory's DOH suggests a need for closer monitoring of inventory levels and a reassessment of inventory management strategies to optimize working capital and operational efficiency.