The Cheesecake Factory (CAKE)

Payables 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
Payables	US$ in thousands	62,092	63,152	66,638	54,086	58,432
Payables turnover		26.76	25.43	23.23	35.95	26.15

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,661,610K ÷ $62,092K
= 26.76

The payables turnover ratio for The Cheesecake Factory has exhibited fluctuations over the past five years. In December 2020, the payables turnover ratio was 26.15, indicating that the company was able to convert its accounts payable into cash approximately 26.15 times during the year.

By December 2021, the payables turnover had increased to 35.95, suggesting a more efficient management of accounts payable during that period. However, in December 2022, the ratio decreased to 23.23, reflecting a potential slowdown in the company's ability to convert payables into cash.

Subsequently, the payables turnover ratio improved to 25.43 by December 2023, indicating a partial recovery in efficiency. In the most recent year, December 2024, the ratio reached 26.76, showing a slight increase in the turnover of payables compared to the previous year.

Overall, the trend in payables turnover for The Cheesecake Factory demonstrates some fluctuations, suggesting varying levels of efficiency in managing its accounts payable over the years analyzed. Further analysis of the company's payables turnover in conjunction with other financial metrics would provide a more comprehensive understanding of its financial performance and management of working capital.