The Cheesecake Factory (CAKE)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,573,389	2,589,182	2,542,973	2,509,446	3,303,156	3,187,047	3,157,520	3,093,833	2,927,540	2,705,399	2,468,641	1,995,536	1,983,225	2,122,703	2,191,523	2,498,317	2,482,692	2,373,817	2,362,441	2,347,115
Property, plant and equipment	US$ in thousands	791,093	777,669	770,315	754,895	746,051	755,524	745,251	744,751	741,746	755,640	761,589	760,722	774,137	789,604	805,889	818,283	831,599	759,243	758,496	763,884
Fixed asset turnover		3.25	3.33	3.30	3.32	4.43	4.22	4.24	4.15	3.95	3.58	3.24	2.62	2.56	2.69	2.72	3.05	2.99	3.13	3.11	3.07

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,573,389K ÷ $791,093K
= 3.25

The fixed asset turnover ratio for The Cheesecake Factory has shown fluctuations over the past several quarters. The ratio measures how effectively the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating revenue from fixed assets.

From the data provided, we can observe that the fixed asset turnover ratio ranged from 2.56 to 4.43 over the last few quarters. The trend shows some inconsistency in the ratio, with some quarters having higher ratios (e.g., Dec 31, 2022 and Sep 30, 2022) and others having lower ratios (e.g., Mar 31, 2021 and Jun 30, 2021).

Overall, the company's fixed asset turnover has been above 3 in most quarters, which suggests that The Cheesecake Factory is efficiently utilizing its fixed assets to generate sales. However, the fluctuations in the ratio indicate that there may be variations in asset utilization efficiency over time, which could be influenced by factors such as changes in business operations or investments in new assets.

It would be important for the company to assess the reasons behind the fluctuations in the fixed asset turnover ratio and continuously monitor and improve asset efficiency to ensure optimal utilization of fixed assets in generating revenue.