The Cheesecake Factory (CAKE)
Cash ratio
| Jan 31, 2025 | Dec 31, 2024 | Jan 31, 2024 | Dec 31, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 84,176 | 84,176 | 56,290 | 56,290 | 114,777 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 711,420 | 711,420 | 660,671 | 660,671 | 656,678 |
| Cash ratio | 0.12 | 0.12 | 0.09 | 0.09 | 0.17 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($84,176K
+ $—K)
÷ $711,420K
= 0.12
The Cheesecake Factory's cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, shows a fluctuating trend over the past few periods. As of January 31, 2023, the cash ratio was 0.17, indicating that the company had $0.17 in cash and cash equivalents for every $1 of current liabilities.
Subsequently, the cash ratio decreased to 0.09 by December 31, 2023, and remained at the same level by January 31, 2024. This decline suggests a decrease in the proportion of liquid assets available to cover short-term obligations.
However, there was a slight improvement by December 31, 2024, with the cash ratio increasing to 0.12 and maintaining the same level by January 31, 2025. Overall, the fluctuating cash ratio trend indicates varying levels of liquidity and the company's ability to meet its short-term financial obligations with available cash reserves. Further analysis of the company's cash management practices and operational efficiency may provide insights into these fluctuations.
Peer comparison
Jan 31, 2025