The Cheesecake Factory (CAKE)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	56,290	114,777	189,627	154,085	58,416
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	660,671	656,678	636,273	586,067	614,587
Cash ratio		0.09	0.17	0.30	0.26	0.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($56,290K + $—K) ÷ $660,671K
= 0.09

The cash ratio of The Cheesecake Factory has shown fluctuations over the past five years. In 2023, the cash ratio was 0.09, indicating that the company had $0.09 in cash and cash equivalents for every $1 of current liabilities. This represents a decrease from the previous year's ratio of 0.17 in 2022. The sharp decline in the cash ratio suggests a relatively lower level of liquidity in 2023 compared to 2022.

Looking back further, the company's cash ratio was relatively stable in 2021 at 0.30, indicating a significant increase in liquidity compared to 2020 when the ratio was 0.26. In 2019, the cash ratio was lower at 0.10, indicating weaker liquidity compared to the most recent years.

Overall, The Cheesecake Factory's cash ratio has fluctuated over the years, with the company's liquidity position improving in some years and weakening in others. It is important to closely monitor the cash ratio to assess the company's ability to meet its short-term obligations with its available cash and cash equivalents.