The Cheesecake Factory (CAKE)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		27.85	27.87	45.39	38.89	34.96
DOH	days	13.11	13.10	8.04	9.39	10.44

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 27.85
= 13.11

The days of inventory on hand (DOH) for The Cheesecake Factory have shown fluctuations over the past five years.

In 2023, the DOH was recorded at 13.11 days, marginally higher than the previous year's DOH of 13.10 days. This indicates that, on average, the company held its inventory for just over 13 days before selling it.

In comparison to 2021, where the DOH was lower at 8.04 days, there has been a notable increase in inventory holding period. This suggests a potential buildup in inventory levels, which could tie up working capital and lead to higher carrying costs.

However, it is worth noting that the DOH in 2023 is still lower than the levels seen in 2020 (9.39 days) and 2019 (10.44 days), indicating improved inventory management efficiency compared to those years.

Overall, while the recent increase in DOH may raise concerns about inventory management and its impact on liquidity, the company's historical performance suggests a certain level of variability in inventory turnover. Tracking this metric closely over the next few periods could provide valuable insights into The Cheesecake Factory's operational effectiveness.