The Cheesecake Factory (CAKE)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 25.75 23.61 23.05 24.81 27.85 17.11 19.50 23.43 27.87 35.01 40.79 44.26 45.39 44.07 42.21 38.67 38.89 39.85 37.85 35.37
Receivables turnover 205.64 122.08 140.92 174.65 166.40 144.43 149.92 — 153.48 134.52 79.35 83.86 80.93 68.47 71.23 57.06 53.76 29.54 21.50 34.68
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
Working capital turnover — — — — — — — — — — — — — — — — — — — —

The Cheesecake Factory's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory in a given period. The trend for The Cheesecake Factory shows a decreasing trend from March 2023 to September 2024, indicating that the company is taking longer to sell its inventory.

2. Receivables Turnover: This ratio reflects how efficiently a company is collecting on its credit sales. The data indicates a fluctuating pattern, with a significant increase in receivables turnover from March 2020 to December 2024, suggesting the company has been improving its collection efficiency.

3. Payables Turnover: The payables turnover ratio measures how efficiently a company pays its suppliers. The trend for The Cheesecake Factory suggests a relatively stable performance over the years, with some fluctuations in payables turnover ratios.

4. Working Capital Turnover: The lack of data for this ratio throughout the period makes it difficult to assess the company's efficiency in generating revenue from its working capital. It may indicate that the company is not relying heavily on working capital turnover as a key performance metric.

Overall, analyzing these activity ratios can help stakeholders understand how effectively The Cheesecake Factory is managing its inventory, receivables, payables, and working capital to generate revenue and maximize operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 14.17 15.46 15.84 14.71 13.11 21.33 18.72 15.58 13.10 10.43 8.95 8.25 8.04 8.28 8.65 9.44 9.39 9.16 9.64 10.32
Days of sales outstanding (DSO) days 1.77 2.99 2.59 2.09 2.19 2.53 2.43 — 2.38 2.71 4.60 4.35 4.51 5.33 5.12 6.40 6.79 12.36 16.98 10.53
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

The analysis of The Cheesecake Factory's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH): The DOH decreased steadily from March 31, 2020, to June 30, 2021, indicating efficient management of inventory levels. However, there was a slight increase in DOH from September 30, 2021, to December 31, 2021. Subsequently, there was fluctuation in DOH until December 31, 2024, with a notable increase from September 30, 2022, to June 30, 2023, before decreasing again by the end of 2024.

2. Days of Sales Outstanding (DSO): The DSO initially decreased from March 31, 2020, to December 31, 2022, indicating an improvement in collecting receivables efficiently. However, there was inconsistency in the DSO from March 31, 2023, to September 30, 2024, with some fluctuations observed over time.

3. Number of Days of Payables: The number of days of payables showed fluctuations from March 31, 2020, to June 30, 2022, with a general decrease in the number of days to pay suppliers. However, there was an increased trend from December 31, 2022, to June 30, 2023, before a decrease until December 31, 2024.

Overall, The Cheesecake Factory exhibited mixed trends in its activity ratios, with periods of improvement in efficiency in managing inventory and collecting receivables, along with fluctuations in the number of days taken to pay suppliers. It is essential for the company to continue monitoring and optimizing these activity ratios to ensure effective working capital management.

Long-term

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
Fixed asset turnover 4.26 4.27 4.32 4.36 4.35 4.44 4.43 4.47 4.43 4.22 4.24 4.15 3.95 3.58 3.24 2.62 2.56 2.69 2.72 3.05
Total asset turnover 1.18 1.21 1.22 1.22 1.21 1.24 1.23 1.23 1.19 1.17 1.14 1.12 1.05 1.00 0.91 0.73 0.72 0.75 0.76 0.93

The fixed asset turnover ratio for The Cheesecake Factory has shown a consistent upward trend over the years, indicating that the company is becoming more efficient in generating sales from its fixed assets. The ratio has increased from 3.05 in March 2020 to 4.26 in December 2024. This suggests that the company is utilizing its fixed assets more effectively to generate revenues.

In contrast, the total asset turnover ratio has fluctuated over the years, but generally, it has shown an increasing trend. This ratio reflects the company's ability to generate sales from all its assets. The ratio has increased from 0.93 in March 2020 to 1.18 in December 2024. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets.

Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios reflects the company's improved efficiency in utilizing its assets to generate sales, which is a positive indicator of its operational performance and asset management.