The Cheesecake Factory (CAKE)

Number of days of payables

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
Payables turnover 26.76 26.30 23.84 26.46 25.43 18.80 16.33 24.24 23.23 36.93 36.20 33.46 35.95 36.05 31.92 26.88 26.15 24.43 26.65 30.26
Number of days of payables days 13.64 13.88 15.31 13.79 14.36 19.41 22.36 15.06 15.71 9.88 10.08 10.91 10.15 10.12 11.44 13.58 13.96 14.94 13.69 12.06

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 26.76
= 13.64

The number of days of payables for The Cheesecake Factory has shown some fluctuation over the past few years. From March 31, 2020, to September 30, 2021, the trend was generally decreasing, indicating that the company was taking longer to pay its suppliers. This could potentially be a strategic move to improve cash flow management or negotiate more favorable terms with suppliers. However, from December 31, 2021, to June 30, 2022, there was a slight increase in the number of days of payables, suggesting the company may have adjusted its payment practices.

The number of days of payables spiked significantly to 22.36 days on June 30, 2023, before decreasing to 13.64 days by December 31, 2024. This may raise concerns about the efficiency of the company's payables management during the period of the spike. It could indicate potential issues such as delays in processing payments or strain on the company's relationships with suppliers.

Overall, analyzing the number of days of payables can provide insights into The Cheesecake Factory's liquidity position, operational efficiency, and relationships with suppliers. It is essential for the company to carefully monitor and manage its payables to ensure optimal cash flow and sustainable business operations.