The Cheesecake Factory (CAKE)

Current ratio

Jan 31, 2025 Dec 31, 2024 Jan 31, 2024 Dec 31, 2023 Jan 31, 2023
Total current assets US$ in thousands 333,313 333,313 300,798 300,798 345,768
Total current liabilities US$ in thousands 711,420 711,420 660,671 660,671 656,678
Current ratio 0.47 0.47 0.46 0.46 0.53

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $333,313K ÷ $711,420K
= 0.47

The current ratio measures a company's ability to meet its short-term obligations with its current assets. The Cheesecake Factory's current ratio has shown consistency over the past few years, hovering around 0.46 to 0.47. This indicates that the company may have limited current assets relative to its current liabilities, suggesting potential challenges in meeting its short-term financial obligations. It is important for stakeholders to monitor this ratio closely to ensure the company's liquidity position remains stable.