The Cheesecake Factory (CAKE)

Payables 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
Payables	US$ in thousands	—	62,092	—	62,663	—	68,644	—	61,383	—	63,152	—	53,392	—	72,682	—	57,001	—	66,638	—	59,030
Payables turnover		—	39.46	—	37.00	—	33.76	—	35.19	—	29.68	—	32.86	—	24.66	—	27.09	—	29.00	—	39.68

January 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,187,810K ÷ $—K
= —

Payables turnover is a financial ratio that measures how efficiently a company is managing its accounts payable. The formula for payables turnover is:

Payables Turnover = Total Supplier Purchases / Average Accounts Payable

Looking at the data provided for The Cheesecake Factory, we can see that the payables turnover has fluctuated over the reporting periods.

- In September 30, 2022, the payables turnover ratio was 39.68, indicating that the company converted its accounts payable into purchases approximately 39.68 times during the period.
- However, in December 31, 2022, the payables turnover ratio decreased to 29.00, suggesting that the company took longer to pay off its suppliers compared to the previous period.
- The ratio improved in March 31, 2023, reaching 27.09, but then decreased again in June 30, 2023, to 24.66.
- The trend continued with fluctuations in subsequent periods, showing values of 32.86 in September 30, 2023, 29.68 in December 31, 2023, 35.19 in March 31, 2024, 33.76 in June 30, 2024, 37.00 in September 30, 2024, and 39.46 in December 31, 2024.

A higher payables turnover ratio is generally better as it indicates that the company is paying off its suppliers quickly. Conversely, a lower ratio may suggest the company is taking longer to pay its suppliers. It is important to consider industry norms and the company's specific circumstances when analyzing the payables turnover ratio.