The Cheesecake Factory (CAKE)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	3,581,700	3,439,500	3,303,160	2,927,540	1,982,420
Receivables	US$ in thousands	17,417	20,670	21,522	36,173	36,889
Receivables turnover		205.64	166.40	153.48	80.93	53.74

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,581,700K ÷ $17,417K
= 205.64

The receivables turnover ratio for The Cheesecake Factory has shown a consistent and improving trend over the past five years. The ratio increased from 53.74 in December 2020 to 205.64 in December 2024. This significant increase indicates that the company's efficiency in collecting payments from customers has considerably improved over the years. A higher receivables turnover ratio implies that the company is able to collect outstanding receivables more rapidly, which is a positive sign of effective credit management and liquidity. The upward trajectory of this ratio suggests that The Cheesecake Factory has been successful in managing its accounts receivable efficiently and converting those receivables into cash at a faster rate, which may lead to improved cash flow and working capital management.