The Cheesecake Factory (CAKE)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	56,290	63,987	91,557	116,164	114,777	133,157	194,891	183,556	189,627	131,030	161,768	181,345	154,085	243,768	250,155	81,023	58,416	306,252	22,604	22,529
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	660,671	618,520	623,452	626,695	656,678	606,168	623,504	594,436	636,273	557,108	597,152	557,957	586,067	540,377	532,672	507,126	614,587	433,786	436,963	446,636
Cash ratio		0.09	0.10	0.15	0.19	0.17	0.22	0.31	0.31	0.30	0.24	0.27	0.33	0.26	0.45	0.47	0.16	0.10	0.71	0.05	0.05

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 exhibited fluctuations over the past few years. The cash ratio was relatively stable in the range of 0.09 to 0.19 from Dec 31, 2019, to Mar 31, 2023. However, there was a significant increase in the cash ratio from Jun 30, 2023, to Sep 30, 2023, reaching its peak of 0.31. This may indicate an increase in the company's ability to cover its short-term liabilities with cash and cash equivalents during that period.

The cash ratio then continued to fluctuate between 0.24 and 0.47 from Sep 30, 2023, to Sep 30, 2020, with some periods showing a decreasing trend. Notably, the cash ratio experienced a significant surge to 0.71 on Mar 31, 2020, before dropping to 0.05 by Sep 30, 2019. This sharp decline may warrant further investigation into the management of cash and liquidity during that particular period.

Overall, the trend in The Cheesecake Factory's cash ratio demonstrates variability and highlights the importance of monitoring the company's liquidity position consistently to ensure it can meet its short-term obligations using its available cash resources.