The Cheesecake Factory (CAKE)

Days of sales outstanding (DSO)

		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
Receivables turnover		124.50	108.23	111.83	—	153.48	134.52	79.35	83.86	80.93	68.47	71.23	57.06	53.76	29.54	21.50	34.68	82.09	—	—	—
DSO	days	2.93	3.37	3.26	—	2.38	2.71	4.60	4.35	4.51	5.33	5.12	6.40	6.79	12.36	16.98	10.53	4.45	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 124.50
= 2.93

The Days of Sales Outstanding (DSO) for The Cheesecake Factory have shown some fluctuations over the past few quarters. DSO represents the average number of days it takes for a company to collect payment after a sale has been made.

Looking at the data provided, we can see that the DSO has generally improved over the more recent quarters. In the most recent quarter ending December 31, 2023, the DSO was 2.93 days, indicating that the company is collecting payments more quickly compared to previous quarters. This is a positive sign as it shows effective management of account receivables and efficient cash flow management.

In comparison to the same quarter last year, the DSO has decreased significantly from 6.79 days to 2.93 days, which indicates a better ability to collect payments timely. It is also worth noting that the DSO has been on a decreasing trend over the past few quarters, which is a positive indicator of the company's financial health and efficiency in collecting payments from customers.

Overall, the downward trend in the DSO for The Cheesecake Factory suggests that the company has been effectively managing its receivables and improving its cash conversion cycle. This improvement can lead to better liquidity, lower financing costs, and overall stronger financial performance.