The Cheesecake Factory (CAKE)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,661,610	1,605,720	1,548,330	1,944,610	1,527,720
Inventory	US$ in thousands	64,526	57,654	55,559	42,839	39,288
Inventory turnover		25.75	27.85	27.87	45.39	38.89

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,661,610K ÷ $64,526K
= 25.75

The Cheesecake Factory's inventory turnover has shown fluctuations over the years. In 2020, the inventory turnover ratio was 38.89 times, indicating that the company's inventory was sold and replaced nearly 39 times during the year. This ratio increased to 45.39 times by the end of 2021, suggesting an improvement in inventory management efficiency.

However, there was a significant decline in inventory turnover to 27.87 times by the end of 2022, which may imply a slower rate of inventory turnover compared to the previous year. This trend continued into 2023 with a similar inventory turnover ratio of 27.85 times.

By the end of 2024, The Cheesecake Factory's inventory turnover further decreased to 25.75 times, indicating a potential challenge in managing and selling inventory efficiently. Overall, the downward trend in inventory turnover ratios from 2021 to 2024 may raise concerns about the company's inventory management practices and operational efficiency.