The Cheesecake Factory (CAKE)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	300,798	345,768	405,589	341,359	244,515
Total current liabilities	US$ in thousands	660,671	656,678	636,273	586,067	614,587
Current ratio		0.46	0.53	0.64	0.58	0.40

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $300,798K ÷ $660,671K
= 0.46

The current ratio of The Cheesecake Factory has exhibited fluctuations over the past five years, ranging from 0.40 to 0.64. The ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally preferable as it indicates a stronger ability to cover short-term liabilities.

In the latest year, as of December 31, 2023, the current ratio stood at 0.46, indicating a decrease compared to the previous year. This implies that the company may be facing challenges in meeting its short-term obligations with its current assets. It is important for stakeholders to monitor the trend of the current ratio over time to assess the company's liquidity position and financial health.

Further analysis of the components of current assets and liabilities is necessary to determine the underlying reasons for the changes in the current ratio and to assess the company's liquidity risk.