The Cheesecake Factory (CAKE)

Inventory turnover

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
Cost of revenue (ttm)	US$ in thousands	2,187,810	2,449,844	2,306,836	2,318,302	2,331,330	2,317,282	2,446,458	2,160,374	2,135,812	1,874,070	1,732,896	1,754,252	1,760,287	1,792,142	1,331,377	1,544,099	1,720,915	1,932,326	2,588,287	2,342,077
Inventory	US$ in thousands	64,526	64,526	69,805	69,805	70,987	70,987	65,469	65,469	57,654	57,654	58,672	58,672	60,868	60,868	58,989	58,989	55,559	55,559	62,275	62,275
Inventory turnover		33.91	37.97	33.05	33.21	32.84	32.64	37.37	33.00	37.05	32.51	29.54	29.90	28.92	29.44	22.57	26.18	30.97	34.78	41.56	37.61

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,187,810K ÷ $64,526K
= 33.91

The inventory turnover of The Cheesecake Factory has been fluctuating over the analyzed period. The inventory turnover ratio indicates the efficiency at which the company is managing its inventory. A higher turnover ratio is generally favorable as it suggests that the company is selling its inventory quickly and efficiently.

Based on the provided data, we observed that the inventory turnover for The Cheesecake Factory fluctuated between a low of 22.57 (April 30, 2023) and a high of 41.56 (October 31, 2022). The highest turnover rates were recorded in the earlier periods, indicating a more efficient management of inventory during those times.

However, the turnover ratio experienced a decline towards the middle of the analyzed period but showed signs of improvement in the latter periods. The fluctuations in the inventory turnover ratio could be attributed to various factors such as seasonal fluctuations in demand, changes in product offerings, or inventory management practices.

Overall, the company's inventory turnover performance suggests that there have been some ups and downs in managing its inventory efficiently. It is important for The Cheesecake Factory to monitor and optimize its inventory turnover to ensure optimal utilization of its resources and to maintain a healthy balance between holding too much inventory and risking stockouts.