The Cheesecake Factory (CAKE)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,605,720	1,548,330	1,944,610	1,527,720	1,650,970
Inventory	US$ in thousands	57,654	55,559	42,839	39,288	47,225
Inventory turnover		27.85	27.87	45.39	38.89	34.96

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,605,720K ÷ $57,654K
= 27.85

The inventory turnover ratio for The Cheesecake Factory has shown a consistent trend of high turnover over the past five years, indicating the company's effective management of its inventory levels. The ratio has ranged from 27.85 to 45.39, with a notable peak in December 2021. This suggests that the company is efficiently selling and replenishing its inventory within a relatively short period, which is a positive sign of operational efficiency. Overall, The Cheesecake Factory's inventory turnover reflects solid inventory management practices and the ability to quickly convert inventory into sales.