The Cheesecake Factory (CAKE)

Payables 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
Payables	US$ in thousands	63,152	53,392	72,682	57,001	66,638	59,030	58,927	61,741	54,086	52,890	55,377	56,047	58,432	61,549	57,532	55,894	61,946	36,095	35,960	36,394
Payables turnover		19.59	11.90	11.25	17.77	23.23	36.93	36.20	33.46	35.95	36.05	31.92	26.88	26.15	24.43	26.65	30.26	26.65	43.45	43.27	42.59

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,237,074K ÷ $63,152K
= 19.59

The payables turnover ratio for The Cheesecake Factory has exhibited fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its suppliers within a specific period.

In the most recent quarter, ending December 31, 2023, the payables turnover ratio was 19.59. This implies that the company paid off its accounts payable approximately 19.59 times during that quarter. The decreasing trend in the payables turnover from the peak of 43.45 in March 2019 to the current level suggests that the company may be taking longer to pay off its suppliers.

The relatively high payables turnover ratio in some quarters, such as September and December 2022, indicates that the company was efficient in managing its accounts payable during those periods. However, the downward trend in recent quarters may raise concerns about the company's liquidity position and its relationship with suppliers.

Overall, a lower payables turnover ratio may suggest that The Cheesecake Factory is taking longer to pay its suppliers, which could potentially strain relationships or indicate liquidity concerns. It would be important to monitor this ratio over time to assess the company's ability to manage its working capital effectively.