The Cheesecake Factory (CAKE)

Days of inventory on hand (DOH)

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
Inventory turnover		33.91	37.97	33.05	33.21	32.84	32.64	37.37	33.00	37.05	32.51	29.54	29.90	28.92	29.44	22.57	26.18	30.97	34.78	41.56	37.61
DOH	days	10.77	9.61	11.04	10.99	11.11	11.18	9.77	11.06	9.85	11.23	12.36	12.21	12.62	12.40	16.17	13.94	11.78	10.49	8.78	9.71

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 33.91
= 10.77

The Days of Inventory on Hand (DOH) metric for The Cheesecake Factory has shown some fluctuations over the years based on the provided data.

The data indicates that in January 2023, the DOH was at its highest point at 11.78 days, suggesting that the company held inventory for a longer period before selling it. This could point towards potential issues with managing inventory levels efficiently.

Following the peak in January 2023, the DOH experienced a gradual decline until April 2024, indicating improvements in inventory management efficiency. In April 2024, the DOH was at its lowest point at 9.77 days, suggesting that the company was able to sell its inventory quicker.

However, from April 2024 onwards, there was a slight uptick in the DOH, indicating that the company might be holding onto inventory for a slightly longer period again. It will be important for The Cheesecake Factory to closely monitor its inventory levels and sales trends to optimize inventory turnover and maintain healthy liquidity.

Overall, fluctuations in the DOH metric can provide insights into how effectively The Cheesecake Factory is managing its inventory, and continuous monitoring and adjustments may be necessary to maintain optimal inventory levels and operational efficiency.