The Cheesecake Factory (CAKE)

Cash ratio

		Jan 31, 2025	Dec 31, 2024	Oct 31, 2024	Sep 30, 2024	Jul 31, 2024	Jun 30, 2024	Apr 30, 2024	Mar 31, 2024	Jan 31, 2024	Dec 31, 2023	Oct 31, 2023	Sep 30, 2023	Jul 31, 2023	Jun 30, 2023	Apr 30, 2023	Mar 31, 2023	Jan 31, 2023	Dec 31, 2022	Oct 31, 2022	Sep 30, 2022
Cash and cash equivalents	US$ in thousands	84,176	84,176	52,215	52,215	40,654	40,654	60,220	60,220	56,290	56,290	63,987	63,987	91,557	91,557	116,164	116,164	114,777	114,777	133,157	133,157
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	16,600	—	—	—
Total current liabilities	US$ in thousands	711,420	711,420	651,893	651,893	642,607	642,607	654,501	654,501	660,671	660,671	618,520	618,520	623,452	623,452	626,695	626,695	656,678	656,678	606,168	606,168
Cash ratio		0.12	0.12	0.08	0.08	0.06	0.06	0.09	0.09	0.09	0.09	0.10	0.10	0.15	0.15	0.19	0.19	0.20	0.17	0.22	0.22

January 31, 2025 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 shown fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

From September 30, 2022, to October 31, 2023, the cash ratio remained relatively stable at around 0.20, indicating that the company had a comfortable level of cash to cover its short-term liabilities during that period. However, from September 30, 2023, to June 30, 2024, the cash ratio steadily declined, reaching its lowest point of 0.06 on June 30, 2024. This downward trend suggests that the company may have been experiencing some challenges in maintaining sufficient cash reserves relative to its short-term obligations.

Subsequently, there was a slight improvement in the cash ratio, reaching 0.12 by December 31, 2024, and remaining at that level through January 31, 2025. While this indicates a partial recovery in the company's ability to cover short-term liabilities with cash, the cash ratio is still below the levels seen in earlier periods.

Overall, the fluctuating cash ratio of The Cheesecake Factory highlights the importance of closely monitoring liquidity levels to ensure the company can meet its short-term financial obligations effectively. Investors and analysts may want to keep an eye on future financial reports to assess the company's progress in managing its cash position.