The Cheesecake Factory (CAKE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 84,176 | 56,290 | 114,777 | 189,627 | 154,085 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 711,420 | 660,671 | 656,678 | 636,273 | 586,067 |
| Cash ratio | 0.12 | 0.09 | 0.17 | 0.30 | 0.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($84,176K
+ $—K)
÷ $711,420K
= 0.12
The cash ratio of The Cheesecake Factory has fluctuated over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 0.26, indicating that the company had $0.26 in cash for every $1 of current liabilities. The ratio improved to 0.30 by December 31, 2021, suggesting a stronger liquidity position. However, there was a significant decrease to 0.17 by December 31, 2022, indicating a potential strain on immediate liquidity. This trend continued with a further drop to 0.09 by December 31, 2023, suggesting a decreasing ability to cover short-term obligations with cash alone. The cash ratio slightly improved to 0.12 by December 31, 2024, but still remained relatively low compared to previous years. Overall, the decreasing trend in the cash ratio raises concerns about The Cheesecake Factory's liquidity position and its ability to meet short-term financial obligations solely through available cash reserves.
Peer comparison
Dec 31, 2024