The Cheesecake Factory (CAKE)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	3,581,699	3,537,745	3,502,484	3,464,612	3,439,503	3,455,296	3,409,087	3,375,560	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
Property, plant and equipment	US$ in thousands	840,773	829,393	810,444	793,810	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
Fixed asset turnover		4.26	4.27	4.32	4.36	4.35	4.44	4.43	4.47	4.43	4.22	4.24	4.15	3.95	3.58	3.24	2.62	2.56	2.69	2.72	3.05

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,581,699K ÷ $840,773K
= 4.26

The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets, such as buildings, equipment, and property.

Analyzing The Cheesecake Factory's fixed asset turnover from March 31, 2020, to December 31, 2024, we can observe a generally increasing trend in the ratio over the period. The ratio began at 3.05 in March 2020 and fluctuated before showing a consistent upward trajectory.

From June 2021 to December 2024, the fixed asset turnover ratio ranged between 3.24 and 4.43, indicating that the company was able to generate $X in sales for every $1 invested in fixed assets.

The consistent improvement in the fixed asset turnover ratio suggests that The Cheesecake Factory effectively utilized its fixed assets to support revenue growth and operational efficiency during the period under consideration. This trend reflects positively on the company's operational performance and management of its fixed assets.