The Cheesecake Factory (CAKE)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		205.64	122.08	140.92	174.65	166.40	144.43	149.92	—	153.48	134.52	79.35	83.86	80.93	68.47	71.23	57.06	53.76	29.54	21.50	34.68
DSO	days	1.77	2.99	2.59	2.09	2.19	2.53	2.43	—	2.38	2.71	4.60	4.35	4.51	5.33	5.12	6.40	6.79	12.36	16.98	10.53

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 205.64
= 1.77

The days of sales outstanding (DSO) ratio for The Cheesecake Factory has shown a significant improvement over the past few years. The DSO measures the average number of days it takes for the company to collect its accounts receivable. A lower DSO indicates that the company is managing its accounts receivable efficiently.

From March 31, 2020, where the DSO was at 10.53 days, there has been a consistent decrease in the DSO figure. By December 31, 2024, the DSO had reduced to 1.77 days, showcasing the company's effectiveness in collecting payments from customers promptly.

The downward trend in the DSO ratio signifies that The Cheesecake Factory has been successful in optimizing its credit and collection policies, resulting in a faster conversion of receivables into cash. This improved efficiency in managing accounts receivable can positively impact the company's cash flow and liquidity position, providing more resources for investments or operational needs.