The Cheesecake Factory (CAKE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,439,500 | 3,303,160 | 2,927,540 | 1,982,420 | 2,482,090 |
| Property, plant and equipment | US$ in thousands | 791,093 | 746,051 | 741,746 | 774,137 | 831,599 |
| Fixed asset turnover | 4.35 | 4.43 | 3.95 | 2.56 | 2.98 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,439,500K ÷ $791,093K
= 4.35
The fixed asset turnover ratio for The Cheesecake Factory has shown a fluctuating trend over the past five years. The ratio was at its highest in 2022 at 4.43, indicating that the company generated $4.43 in revenue for every dollar invested in fixed assets during that year. However, in 2023, the ratio slightly decreased to 4.35, but still remains relatively high.
The consistent high values of fixed asset turnover ratios in recent years suggest that The Cheesecake Factory efficiently utilizes its fixed assets to generate revenue. This implies that the company is effectively managing its investments in property, plant, and equipment to support its sales and operations.
Overall, the upward trend in fixed asset turnover reflects a positive performance in optimizing the utilization of fixed assets to drive revenue generation for The Cheesecake Factory.
Peer comparison
Dec 31, 2023