The Cheesecake Factory (CAKE)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		21.46	10.83	13.44	17.18	27.87	35.01	40.79	44.26	45.39	44.07	42.21	38.67	38.89	39.85	37.85	35.37	34.96	32.83	33.81	36.88
DOH	days	17.01	33.72	27.16	21.25	13.10	10.43	8.95	8.25	8.04	8.28	8.65	9.44	9.39	9.16	9.64	10.32	10.44	11.12	10.79	9.90

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 21.46
= 17.01

The days of inventory on hand (DOH) for The Cheesecake Factory has shown some fluctuations over the past few quarters. Generally, a lower DOH indicates that the company is selling its inventory more quickly, while a higher DOH suggests it may be taking longer to sell its inventory.

From December 2019 to September 2020, the DOH remained relatively stable around 10 days, indicating efficient inventory management. However, there was a notable increase in DOH to over 13 days by December 2020, suggesting a slower turnover of inventory.

Subsequently, the DOH continued to rise significantly to over 27 days by June 2021, but then decreased gradually through the end of 2022. The most recent data as of December 2023 shows a DOH of around 17 days, which is an improvement from the previous quarter.

Overall, The Cheesecake Factory seems to have experienced inventory management challenges in the past, leading to higher DOH values. However, the recent decrease in DOH indicates potential efforts to streamline inventory processes and improve efficiency in managing inventory levels. Further monitoring of inventory turnover will be crucial to assess the company's ongoing efforts in enhancing operational effectiveness.