The Cheesecake Factory (CAKE)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,237,074	635,135	817,986	1,013,182	1,548,333	2,180,064	2,132,945	2,065,869	1,944,608	1,906,799	1,767,440	1,506,505	1,527,717	1,503,521	1,533,367	1,691,320	1,650,968	1,568,329	1,555,833	1,550,003
Inventory	US$ in thousands	57,654	58,672	60,868	58,989	55,559	62,275	52,286	46,680	42,839	43,270	41,868	38,955	39,288	37,727	40,511	47,822	47,225	47,778	46,011	42,028
Inventory turnover		21.46	10.83	13.44	17.18	27.87	35.01	40.79	44.26	45.39	44.07	42.21	38.67	38.89	39.85	37.85	35.37	34.96	32.83	33.81	36.88

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,237,074K ÷ $57,654K
= 21.46

The inventory turnover ratio for The Cheesecake Factory has fluctuated over the past few years, ranging from a low of 10.83 to a high of 45.39. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally seen as positive as it reduces the risk of obsolescence and holding costs.

From the data provided, it is apparent that the inventory turnover ratio has generally been on an upward trend until recent quarters, where there has been some fluctuation. The most recent inventory turnover ratio is 21.46, which is relatively lower compared to the peaks seen in previous periods.

Overall, a high inventory turnover ratio is desirable as it signifies efficient inventory management. The Cheesecake Factory should continue to monitor this ratio closely to ensure optimal inventory levels and maximize sales opportunities.