The Cheesecake Factory (CAKE)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,581,700 | 3,439,500 | 3,303,160 | 2,927,540 | 1,982,420 |
| Property, plant and equipment | US$ in thousands | 840,773 | 791,093 | 746,051 | 741,746 | 774,137 |
| Fixed asset turnover | 4.26 | 4.35 | 4.43 | 3.95 | 2.56 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,581,700K ÷ $840,773K
= 4.26
The fixed asset turnover ratio for The Cheesecake Factory has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of utilizing fixed assets to generate revenue. The ratio increased from 2.56 in 2020 to 4.26 in 2024. This suggests that the company is generating more sales relative to its investment in fixed assets. The significant growth in the ratio reflects the effective management of fixed assets and operational productivity, which may lead to improved profitability and shareholder value in the long term. Overall, the increasing trend in fixed asset turnover ratio demonstrates The Cheesecake Factory's ability to generate higher sales from its fixed assets, a positive indicator of operational efficiency and financial performance.
Peer comparison
Dec 31, 2024